 "Derivative strategy on Sun Pharma by HDFC Securities")
Bull Spread strategy on Sun Pharma
Buy Sun Pharma July 400 Call at Rs 10; Lot size: 1,100
Target: Rs 420 call at Rs 3.6.
Target: Rs 420 call at Rs 3.6.
Cost of the strategy Rs 6.4 (Rs 7,040 per strategy)
Maximum profit: Rs 14,960 If Sun Pharma closes at or above 420 on July expiry.
Break-even Point: Rs 406.4
Rationale:
Also Read
Long build-up is seen in the Sun Pharma Futures’ yesterday, where we have seen rise in Open Interest with price rising by 1.5 per cent.
Stock price formed double bottom around 367 levels and reversed nothwards to close above its 5 and 20 day SMA.
Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.
In the Option segment, we have seen Open Interest addition at 430-440 levels
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%