 "Index rejig and your stocks")
Mentioned below is the derivative strategy on ITC:
Option Strategy
ITC Long Put Ladder Spread
Buy 315 PE 1 lot
Sell 305 PE 1 lot
Sell 300 PE 1 lot
Target: 9000
Stop Loss: 2000
Rationale:
ITC is in Long unwinding cycle
Stock is trading near its highest Put strike. Unwinding in 320 PE will auger fresh momentum on downside
Considering falling Implied volatility , Long put Ladder 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, 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.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
