Mentioned below is the derivative strategy on Maruti Suzuki from Motilal Oswal Securities:
Option Strategy: Maruti Suzuki Call Butterfly spread
Buy May 3,900 CE 1 lot
Sell May 4,000 CE 2 lots
Buy May 4,100 CE 1 lot
Stop Loss: 1,900
1. Maruti is in long-long unwinding cycle
2. Option indicative band shows immediate resistance at 4,000 and support at 3,700.
3. Considering stable volatility and positive outlook, Call Butterfly spread is recommended
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities