Derivative strategy on Reliance Industries by Motilal Oswal Securities

Derivative strategy on Reliance Industries by Chandan Taparia of Motilal Oswal Securities:
 
Option Strategy:  RELIANCE INDUSTRIES (Call Ladder Spread)
 
Buy 1340 CE 1 lot
Sell 1400 CE 1 lot

Sell 1420 CE 1 lot
 
Rationale:
 
Reliance has respected its multiple support of 1300 and formed a double bottom.
 
Fresh writing at 1340 PE could provide support while unwinding in 1340, 1360, 1380 could attract a bounce.
 
Maximum Call OI is at 1400 strike which could restrict its upside momentum.
 
Thus low risk Call Ladder Spread is recommended.
 
TARGET: Rs 10,000 
                   
STOP LOSS: Rs 4,000

Hedge: Buy Future Above 1,460
 
Disclaimer: Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.