Bull spread Strategy on Divi s Lab Buy Divi s Lab Dec 3850 Call at Rs 105 & simultaneously sell Dec 4000 Call at Rs 53 Lot Size: 200 Cost of the strategy: Rs 52 (Rs 10400 per strategy) Maximum profit: Rs 19,600 if Divi s Lab closes at or above 4,000 till 31 Dec expiry. Breakeven Point Rs 3,902
Rationale: Short covering was seen in the Divi s Lab Futures where we have seen 1 per cent fall in the Open Interest with price rising by 3 per cent. The stock Price has broken out on the daily chart with higher volumes where it closed at all time high level. Oscillators like RSI and MFI are showing strength in the stock