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Derivative strategy for M&M from Motilal Oswal Securities

Derivative strategy for M&M from Motilal Oswal Securities



M&M Strategy: Call Ladder Spread

Buy Jun 1380 CE 1 lot

Sell Jun 1420 CE 1lot   

Sell Jun 1440 CE 1 lot

Target: Rs 1640                    

Stop Loss: Above Rs 1480

Rationale: M&M is in long -long unwinding cycle. Positive sector outlook along with unwinding in Rs 1360 CE could augur well for upside momentum. Considering stable volatility and to benefit from theta decay, 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