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Derivative strategies on Idea Cellular, HUL from Motilal Oswal Securities

Mentioned below is the derivative strategy on Idea Cellular and HUL

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Shubham Agarwal Mumbai
Last Updated : Apr 01 2016 | 3:52 AM IST
IDEA CELLULAR


OPTION STRATEGIES

 

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IDEA BULL CALL SPREAD

BUY APRIL 1 LOT 115 CE

SELL APRIL 1 LOT 120 CE

Target : Rs 7500                

Stop Loss: Rs 2800


RATIONALE: Telecom sector saw long built up in March series and roll-over in line with 3M average. Idea have been in long- long Unwinding Cycle. Stock is trading near its highest Call strike and unwinding in 110 CE will augur fresh momentum towards 115-120 CE. Considering rising implied volatility , OTM Bull spread is recommended.

 
HINDUSTAN UNILEVER

HINDUNILVR: RATIO CALL SPREAD

 
BUY APRIL 880 CE 1 LOT

SELL APRIL 920 CE 2 LOTS

Target: Rs 6000      

Stop Loss: Rs 2200

RATIONALE: Stock have seen accumulation in open interest  in last few trading session with sideways price action. Immediate option band stands at 840-920. Considering low implied volatility and expectation of positive 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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities

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First Published: Apr 01 2016 | 3:52 AM IST

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