 "Indian Oil Corporation logo outside a fuel station in New Delhi. Photo: Reuters")
Bull spread Strategy on Indian Oil
Buy IOC Feb 100 Call at Rs 2.30 & simultaneously sell Feb 105 Call at Rs 0.95
Lot Size 6500
Cost of the strategy Rs 1.35 (Rs 8775 per strategy)
Maximum profit Rs 23725 If IOC closes at or above 105 on 25 Feb expiry.
Breakeven Point Rs 101.35
Rationale:
>> Long build up was seen in the IOC Futures’ where we have seen 12 per cent (Prov) rise in the Open Interest with price rising by 4 per cent.
>> The stock price has broken out on the daily chart (Adjusted for dividend) where it closed at highest level
