Derivative strategy on ONGC from Motilal Oswal Securities

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

Option Strategy:

ONGC: Ratio Call Spread

Buy: 310 CE 1 lot

Sell: 320 CE 2 lots

Target: 10000     

SL: 2500

Rationale:

1. ONGC is in Long- Long Unwinding Cycle

2. Positive sector outlook along with unwinding in 290-300 CE, could see stock inching higher towards 320.

3. Put concentration at 290 should act crucial support. Since we are playing momentum, Ratio Call 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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