Buy TCS 1100 Put Option: Motilal Oswal

Buy TCS 1100 Put Option, says Rikesh Parikh, Vice-President Markets Strategy and Product Development –Equities at Motilal Oswal Financial Services.

Parikh told CNBC-TV18, "TCS has broken its 200 day moving average and it has moved down to almost Rs 1,050 odd level and then it reversed back to Rs 1,100 level. So at Rs 1,120 which is its 200 moving average, it will face some amount of resistance over there and I am taking a call that buy 1,100 TCS put option and at the same time also sell 1,050 put option of TCS to reduce outflow over there and within the range one can benefit out of it. 1,084 will be its breakeven level and if reach Rs 1,050 then that will be maximum gain level for TCS."
The company's trailing 12-month (TTM) EPS was at Rs 38.68 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 28.45. The latest book value of the company is Rs 99.53 per share. At current value, the price-to-book value of the company was 11.06. The dividend yield of the company was 1.27%.