Derivative strategy on Larsen & Toubro by Chandan Taparia of Motilal Oswal Securities:
Larsen & Toubro Call Ladder Spread
Buy 1540 CE 1 lot
Sell 1560 CE 1 lot
Sell 1580 CE 1 lot
Target Profit: Rs 10,000
Maximum Loss: RS 1,000 below 1,540
Hedge Above: Buy Future above 1595
1. Larsen & Toubro has been consolidating in last few trading session
2. Highest put congestion at 1520 could provide support to the stock. while highest call congestion is placed at 1560
3. As we are participating bullish momentum and to benefit from theta decay, Bull Call Ladder is recommended
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Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.