Derivative strategy for India Cements from MOSL

Derivative strategy on India Cements by Sacchitanand Uttekar, Equity Technical Analyst & PFA, MOSL

Here is derivative strategy on India Cements by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:
 
Option Strategy: India Cement (Ratio Call Spread)
 
Buy 130 CE 1lot     
            
Sell 135 CE 2 lots
 
1.       India Cements is in long- long unwinding cycle
 
2.       Stock is quoting near its highest Call concentration at 125
 
3.       Unwinding in same could lead to option trigger and push stock higher
 
4.       Considering stable volatility and to benefit from theta decay, Ratio Call Spread is recommended
 
Target: Rs 12,000      
      
Stop Loss: 3,000