Derivative strategy on LIC Housing Finance by MOSL

Derivative strategy on LIC Housing Finance by Chandan Taparia, Derivative and Technical Analyst & PFA at MOSL

 

Option Strategy:

 

LIC HOUSING FINANCE: Bull Call Spread

 

Buy 580 Mar CE 1 lot

Sell 600 Mar CE 1 lot

 

Rationale:

 

1. LIC Housing Finance had witnessed accumulation in OI in past few trading session

2. Option activity shows highest concentration in 580 CE and 560 PE

3. Unwinding in 560 CE could lead to option trigger boosting the momentum

4. Thus Bull Call Spread is recommended

 

Target: 8,000      

Stop Loss: 3,500

 

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.

 

Chandan Taparia is an Deivatives and Technical Analyst at Motilal Oswal Securities.


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