Option strategy on Zee Entertainment by Chandan Taparia of MOSL

Strategy:

ZEE ENTERTAINMENT ENTERPRISES: BULL CALL SPREAD

BUY ZEEL 520 CALL

SELL ZEEL 540 CALL

BEP : 527

MAX RISK : 7 POINTS / KEEP SL OF : Rs. 5000

MAX REWARD : 13 POINTS / KEEP TARGET OF : Rs. 10000

RATIONALE:
 

1) Respected to its multiple support of 500-505 zones and has been consolidating near to support zones

2) Supports are slightly shifting higher and a small follow could lead it to 540 zones

3) Hovering near to its 50 DEMA

4) Rollover of 82% with positive roll cost suggests an up move

5) Thus low risk Bull Call Spread is recommended

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.