Derivative strategy for IOC from Motilal Oswal

Here is the derivative strategy on IOC from Sacchitanand Uttekar

Derivative strategy, IOC

Option Strategy : IOC (Call Butterfly Spread)

 

Buy 660 CE Oct 1 lot         

Sell 680 CE Oct 2 lots       

Buy 700 CE Oct 1 lot
 

Rationale: IOC is in Long- Long Unwinding cycle. Energy sector is witnessing positive built up in open interest along with spur in price. Support (Put concentration) for the stock is shifting higher to 640 levels. Further Unwinding in 650 CE augurs well for upside momentum to continue. Considering stable volatility, Call Butterfly Strategy is recommended



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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities