Derivative strategy on GAIL from Motilal Oswal Securities

Option Strategy: GAIL (Call Ratio Spread)

Buy 450 CE 1 lot                 

Sell 460 CE 1 lot                 

Sell 470 CE 1 lot

Target: 12000     

SL: 3000

 

· Gail is in long -long unwinding cycle

· Energy sector has outperformed broader market in this volatile scenario

· Highest call concentration stays at 450, Unwinding in it can see stock rallying . Thus Call ladder spread is recommended

Disclaimer: 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.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities

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