Derivative strategy on HPCL from Motilal Oswal Securities

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

Option Strategy: Hindustan Petroleum Corporation (Put Ratio Spread)

Buy May Rs 820 PE 1 lot

Sell May 780 PE 2 lots

Target: 8,000                           

Stop Loss: 1,500

Rationale:

· Hindustan Petroleum Corporation (HPCL) is facing resistance at 840 level

· Unwinding in 840 put will augur move towards 800 levels

· Considering long expiry and falling volatility, Ratio put spread is recommended

 
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities