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F&O Strategy: Nandish Shah recommends Bear Spread strategy on DLF

The technical analyst from HDFC Securities recommends buying DLF June 300 Put and simultaneously selling 280 Put.

DLF
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Photo: Reuters

Nandish Shah Mumbai
Bear Spread strategy on DLF

Buy DLF (30-June Expiry) 300 PUT at Rs 9.7 & simultaneously sell 280 PUT at Rs 3.70

Lot Size 1650

Cost of the strategy Rs 6 (Rs 9,900 per strategy)

Maximum profit Rs 23,100 if DLF closes at or below 280 on 30 June expiry

Breakeven Point Rs 294

Rationales:

  • We have seen short buildup in the DLF futures where we have seen 4% addition (Prov) with DLF falling by 4%.
     
  • Short term trend of the DLF is negative as it is trading below its 5 and 20 day EMA. 
     
  • Stock price has closed below its multiple support range of 306-315 levels

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First Published: Jun 17 2022 | 7:42 AM IST

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