Bull Spread Strategy on Canara Bank by Nandish Shah of HDFC Securities

Buy CANARA BANK January 230 Call at Rs 9.3 & simultaneously sell 250 call at Rs 2.80
 

Lot Size: 2600.
 

Cost of the strategy Rs 6.5 (Rs 16900 per strategy)
 

Maximum profit Rs 35100 If Canara bank closes at or above 250 on January expiry.
 

Break even Point Rs 236.5

Rationale:

• We have seen Long build up in the Canara bank yesterday where we have seen rise in the Open Interest with price moving up by 3 per cent
   
• Stock price has broken out on the daily chart by closing above the resistance level of 224 with higher volumes
   
• Stock price is