Bull Spread Strategy on Aurobindo Pharma Buy Aurobindo Pharma Dec 900 Call at Rs 30 and simultaneously sell Dec 960 Call at Rs 10
Lot Size: 650
Cost of the strategy: Rs 20 (Rs 13,000 per strategy)
Maximum profit: Rs 26,000 if Aurobindo Pharma closes at or above 960 till 31 Dec expiry
Breakeven Point: Rs 920
Rationale: Long build up was seen in Aurobindo Pharma futures where we have seen a 16 per cent rise in the Open Interest with price rising by 3% Stock Price has broken out from the downward slopping trendline, adjoining the highs of December 7 and December 21 on the daily chart with higher volumes RSI Oscillator is showing strength in the stock; DI is trading above minus DI while ADX is placed above 25, indicating momentum in the current uptrend
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
Buy Tata Consumer Dec 580 Call at Rs 26.5 & simultaneously sell Dec 620 Call at Rs 10.5 Lot Size: 1,350 Cost of the strategy: Rs 16 (Rs 21600 per strategy) Maximum profit Rs 32400 if Tata Consumer closes at or above 620 till 31 Dec expiry. Breakeven Poin: Rs 596
Rationale: Long build up is seen in the Tata consumer Futures’ where we have seen 3 per cent rise 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 Plus, DI is trading above minus DI while ADX is placed above 25, Indicating strength in the current uptrend.