Option strategy on Tata Steel by Motilal Oswal Securities

Option Strategy on Tata Steel by Chandan Taparia, Derivatives and Technical Analyst at MOSL:

TATASTEEL – BULL CALL SPREAD

BUY TATASTEEL 620 CALL @ 15.00

SELL TATASTEEL 630 CALL @ 11.20

BEP : 623.80

KEEP SL : 4000

KEEP TARGET : 8000

Rationale:

1. Positive sector outlook and a fresh breakout in the stock

2. Put writing at 620 and 600 strike is supporting it to move higher

3. Call unwinding at 600, 610 and 620 strikes could take it to higher levels.

4. However, maximum Call OI at 640, may restrict its upside

5. Thus low risk Bull Call Spread is recommended

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.