Option strategy on Zee Entertainment by Motilal Oswal Securities

Strategy:

Zee Entertainment (ZEEL): BULL CALL SPREAD

BUY ZEEL 520 CALL

SELL ZEEL 540 CALL

BEP : 527

MAX RISK : 7 POINTS / KEEP SL OF : Rs 5000

MAX REWARD : 13 POINTS / KEEP TARGET OF : Rs 10000

RATIONALE:

1) Respected to its multiple support of 500-505 zones

2) Supports are slightly shifting higher

3) Hovering near to its 50 DEMA

4) Rollover of 82% with positive roll cost suggests an up move

5) Thus low risk Bull Call Spread is recommended

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