Bull spread strategy on HCL Tech by Nandish Shah of HDFC Securities

Stock price has broken out on the daily line chart with higher volumes

Buy HCL TECH JUNE 980 CALL at Rs 18.5 & simultaneously sell 1010 CALL at Rs 7.50

Lot Size: 700

Cost of the strategy: Rs 11 (Rs 7,700 per strategy)

Maximum profit: Rs 13,300, if HCL Tech closes at or above 810 on 24 June expiry.

Breakeven point: Rs 991

Rationale:

-- We have seen long build-up in the HCL Tech Futures till now during the June series, where we have seen 5 per cent rise in the Open Interest with price rising by 0.6 per cent.
 

-- Stock price has broken out on the daily line chart with higher