Derivative strategy on Hindalco from Motilal Oswal Securities

Mentioned below is the derivative strategy for Hindalco from Motilal Oswal Securities:

Option Strategy: Hindalco (Modified Bull Call Spread)

Buy 1 Lot Apr 105 CE

Sell 1 Lot Apr 110 CE
Sell 1 Lot Apr 95 PE

· Hindalco is in Long- long Unwinding Cycle

· Unwinding in 100 CE will augur further thrust  on upside

· Lower end 95 Put act as a vital support

· In order to benefit from higher theta decay, Modified Bull Call Spread is recommended
 
Target: Rs 18,000            
Stop Loss: Rs 5,000


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