 "Derivative strategy for TCS from Motilal Oswal Securities")
TCS
OPTION STRATEGY: (Call Ratio Spread)
Buy 2650 Jun CE 1 lot, Sell 2700 Jun CE 2 Lots
Stop Loss: Rs 500 (Hedge above 2740)
Rationale: TCS is in long- long unwinding cycle. Put built up at 2550 could act as immediate support. Unwinding in 2600 CE could provide further momentum on higher side. Considering stable volatility and to benefit from theta decay, Call Ratio 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
OPTION STRATEGY: (Call Ratio Spread)
Buy 2650 Jun CE 1 lot, Sell 2700 Jun CE 2 Lots
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Target: Rs 9,500
Stop Loss: Rs 500 (Hedge above 2740)
Rationale: TCS is in long- long unwinding cycle. Put built up at 2550 could act as immediate support. Unwinding in 2600 CE could provide further momentum on higher side. Considering stable volatility and to benefit from theta decay, Call Ratio 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