Derivative strategy on YES Bank from Motilal Oswal Securities

Here is the derivative strategy for YES Bank from Sacchitanand Uttekar:

Option Strategy: YES Bank (Put Butterfly Spread)

Buy 1180 PE  lot                 

Sell 1140 PE 2 lots             

Buy 1100 PE 1 lot

Target: 10000     

SL: 3000

Rationale:

·  YES Bank is in long unwinding cycle

·  Stock is trading near its highest Put strike of 1200. Further unwinding in same could see selling pressure intensifying

·  With volatility expected to increase, Put Butterfly 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