RIL likely to move towards 1,800, F&O analysts suggest a call ladder

Mumbai: An almost zero-cost options strategy on RIL has caught the fancy of some derivatives analysts, who are pitching it to rich clients with a risk appetite. As overseas tech and PE firms queue up for a stake in subsidiary Jio Platforms, the RIL stock promises to extend its 92% retracement of the fall from a record high in December to a low of ₹876 on March 23, prompting the strategy.

Called the call ladder, it involves purchasing a 1,580 call option, and selling one 1,640 and 1,680 call option each. All options expire on May 28. The sale of the two higher strike calls almost completely funds the 1,580 call’s purchase. The levels could change if the stock opens and trades higher Monday, caution analysts.

“At near nil cost, the strategy is apt for those with risk appetite and money,” said Rajesh Palviya, derivatives head at Axis Securities.