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Derivative strategy for Tata Motors DVR from Motilal Oswal Securities

Derivative strategy for Tata Motors DVR from Motilal Oswal Securities

  Option Strategy

TATA MOTORS DVR: CALL LADDER SPREAD

Buy 570 CE 1 lot

Sell 580 CE 1 lot

Sell 590 Ce 1 lot

Target: 13725 between 580-590                 

Maximum Loss: 1275 below 570  

Hedge Above 598

Rationale:

Tatamtrdvr is in long – long unwinding cycle

Unwinding in 560-570 CE could amplify the momentum

Considering faster theta decay due to approaching expiry, 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