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F&O Call: Nandish Shah recommends Bull Spread strategy on IOC

The derivative analyst from HDFC Securities recommends to Buy IOC 83 Call and simultaneously SEll 85 Call of the January expiry.

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Nandish Shah
Derivative Strategy

Bull Spread Strategy on Indian Oil Corporation (IOC)


Buy IOC (25-Jan Expiry) 83 CALL at Rs 1.10 & simultaneously sell 85 CALL at Rs 0.40

Lot Size: 9,750

Cost of the strategy: Rs 0.70 (Rs 6,825 per strategy)

Maximum profit: Rs 12,675; if IOC closes at or above Rs 85 on 25-Jan expiry.

Breakeven Point: Rs 83.70

Approx margin required: Rs 28,400

Rationale:
  • We have seen long build up in the IOC futures on Thursday, where we have seen 2 per cent addition (Prov) in Open Interest with price rising by

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First Published: Jan 20 2023 | 8:40 AM IST

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