Bull spread Strategy on Apollo Tyres
Buy APOLLO TYRES APRIL 240 CALL at Rs 9 and simultaneously sell 255 CALL at Rs 4
Lot size: 5,000
Cost of the strategy: Rs 5 (Rs 25,000 per strategy)
Maximum profit: Rs 50,000 If APOLLO TYRE closes at or above 255 on 29 April expiry.
Breakeven point: Rs 245
-- Long build-up was seen in the Apollo Tyres Futures’ where we have seen 6 per cent (Prov) rise in the Open Interest with price rising by 5.5 per cent.
-- Stock price has broken out on the daily line chart where stock price closed at highest level since March 12 with higher volumes
-- Short-term trend of the stock turned positive after the stock price closed above its 5,20- and 50-day EMA
-- Oscillators like RSI and MFI are showing strength in the stock
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.