Derivative strategy on Vedanta from Motilal Oswal Securities

Here is Cairn India derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Here is Cairn India derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:

Option Strategy:

VEDANTA:  Short Strangle Strategy

Sell 255 CE 1 lot

Sell 215 PE 1 lot

Target: 15000     

SL: 4000                

Hedge: Buy future above 256 / Sell Future below 213

Rationale

1. Vedanta is consolidating in past few trading sessions

2. Option indicative band suggest 220 as highest Put concentration and 250 as highest call concentration

3. In order to benefit from faster theta decay and volatility cool-off, Short Strangle strategy 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