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Derivative strategy on Sun Pharma by Chandan Taparia of Motilal Oswal

Derivative strategy on Sun Pharma by Chandan Taparia of Motilal Oswal

Chandan Taparia  |  Mumbai 

BSE, Sensex, stocks

Strategy: SUNPHARMA – BULL CALL SPREAD BUY 1 LOT OF 540 CALL SELL 1 LOT OF 560 CALL NET PREMIUM PAID : 6 POINTS MAX RISK : 6 POINTS (Rs 4800/-) MAX REWARD : 14 POINTS (Rs 11200/-) Rationale: 1) It has given breakout from its major triangle pattern 2) Supports are gradually shifting higher 3) Fresh Put writing could support it to give the breakout 4) Thus a low risk, Bull Call Spread is recommended Disclaimer: The analyst may have position in the stock mentioned above.

First Published: Wed, October 11 2017. 07:00 IST
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