Option Strategy on Bank of Baroda by Motilal Oswal Securities

Option Strategy on Bank of Baroda by Chandan Taparia of Motilal Oswal Securities:
 
BANK OF BARODA (BULL CALL SPREAD)
 
Buy 165 CE 1 lot
Sell 170 CE 1 lot

 
Rationale:
 
1. It has given a reversal on the weekly chart by forming a Hammer candle
2. Holding near to its 50 DEMA and turning from lower band of the rising channel
3. Fresh Put writing at 160 strike could provide the support
4. Call unwinding in 165 and 170 strike propel for a bounce back move
5. Thus low risk strategy Bull Call Spread is recommended

 
Reward: 15,000                    
Risk: 5000
 
Disclaimer: Chandan Taparia is a Derivatives and Technical Analyst at Motilal Oswal Securities.
 
The analyst may have positions in any or all the stocks mentioned above.