 "Derivatives strategy on Muthoot Finance by Nandish Shah of HDFC Securities")
Bull Spread strategy on MUTHOOT FINANCE
Buy Muthoot Finance January 750 Call at Rs 25 & simultaneously sell 800 call at Rs 9
Lot Size: 1,500.
Cost of the strategy: Rs 16 (Rs 24,000 per strategy)
Maximum profit: Rs 51,000 If Muthoot Finance closes at or above Rs 800 on January expiry.
Breakeven Point: Rs 766
Also Read
Rationale:
-- We have seen Long rollover in the Muthoot Finance to the January series with price going up by 0.87 per cent.
-- Stock price has already given breakout on the daily chart by closing above the resistance level of Rs 737 on last Monday with higher volumes.
-- Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.
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%