Bull Spread strategy on Berger Paints
Buy Berger Paint March 580 Call at Rs 14.50 & simultaneously sell 600 call at Rs 8.50
Lot Size: 2,200.
Cost of the strategy: Rs 6 (Rs 13,200 per strategy)
Maximum profit: Rs 30,800 if Berger Paints closes at or above Rs 600 on March expiry.
Break-even point: Rs 586
-- Long build-up is seen in the Berger Paints Futures where we have seen rise in Open Interest with price moving up by 1.70 per cent.
-- After forming multiple bottoms around 565 odd levels, the stock gave a breakout on the daily chart yesterday
-- Stock prices closed at five-day high yesterday with higher volumes
-- Primary trend of the stock is positive where it is trading above its 5,20, and 200-day SMA
-- RSI Oscillators showing strength in the stocks on the daily charts