Option strategy on tata steel by motilal oswal securities

Option strategy on Tata Steel by Motilal Oswal Securities

STOCK MARKET - Option Strategy on Tata Steel by Chandan Taparia, Derivatives and Technical Analyst at MOSL: TATA STEEL – BULL CALL SPREAD BUY TATA STEEL 620 CALL @ 15.00 SELL TATA STEEL 630 CALL @ 11.20

BEP : 623.80 KEEP SL : 4000 KEEP TARGET : 8000 Rationale: 1. Positive sector outlook and a fresh breakout in the stock 2. Put writing at 620 and 600 strike is supporting it to move higher 3. Call unwinding at 600, 610 and 620 strikes could take it to higher levels.

4. However, maximum Call OI at 640, may restrict its upside 5. Thus low risk Bull Call Spread is recommended Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

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