Derivative strategy for India Cements from MOSL

Here is derivative strategy on India Cements by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:

 

Option Strategy: India Cement (Ratio Call Spread)

 

Buy 130 CE 1lot     

            

Sell 135 CE 2 lots

 

1.       India Cements is in long- long unwinding cycle

 

2.       Stock is quoting near its highest Call concentration at 125

 

3.       Unwinding in same could lead to option trigger and push stock higher

 

4.       Considering stable volatility and to benefit from theta decay, Ratio Call Spread is recommended

 

Target: Rs 12,000      

      

Stop Loss: 3,000

 

Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.


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