 "Derivative strategy on HDFC from Shubham Agarwal")
HDFC
Option Strategy: HDFC Bull Call Spread
Buy 1 Lot 1160 CE Sell 1 Lot 1200 CE
Target Profit : Rs 9500
Stop Loss: Rs 4500
Rationale:
After a round of short covering HDFC has started adding longs indicating expectation of further upside.On the upside the head room indicated by the heaviest Call strike is open till 1200 Considering the move already in place further upside may be time consuming hence 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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
