Derivative strategy for SBI from Motilal Oswal

Here is the derivative strategy on SBI from Sacchitanand Uttekar of Motilal Oswal

Option Strategy :

SBIN: Modified Bull Call Spread

 

Buy Oct 265 CE 1lot

Sell Oct 270 CE 1 lot

Sell Oct 250 PE 1 lot

 

Target: Rs 12000                     

Stop Loss: Rs 2000       
         
Hedge: Below 250

 

Rationale: SBI is in long-long unwinding cycle. Option data suggest upward shift in option band. Further unwinding in 260 CE could lead to upbeat in the stock. Considering positive outlook, Modified Bull Call 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