Bull Spread strategy on Britannia by Nandish Shah of HDFC Securities

Short term trend of the stock has turned positive where the stock price is trading above all important short-term moving averages

Bull spread Strategy on Britannia

Buy Britannia Jan 3650 Call at Rs 54 and simultaneously sell Jan 3800 Call at Rs 15

Lot Size: 200

Cost of the strategy: Rs 39 (Rs 7,800 per strategy)

Maximum profit: Rs 22,200 if Britannia closes at or above 3,800 till 28 Jan expiry.

Breakeven Point: Rs 3,689

Rationale:

-- Long build-up was seen in the Britannia Futures’ where we have seen a 4% rise (Prov) in the Open Interest with the price rising by 1 per cent

-- Short-term trend of the stock has turned positive where the stock price is trading above