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Here's a Bull Spread strategy for Cadila Healthcare by HDFC Securities

Long build up is seen in the Cadila Futures' where we have seen 6%(Prov) rise in the Open Interest with price moving up by 2%

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Stock price has broken out on the daily chart where it closed at highest level since 07 July

1 min read Last Updated : Jul 17 2020 | 8:39 AM IST

Bull Spread strategy on Cadila

Buy Cadila 370 Call at Rs 12.60 & simultaneously sell 390 call at Rs 6.60

Lot Size: 2,200

Cost of the strategy Rs 6 (Rs 13200 per strategy)

Maximum profit Rs 30,800 if Cadila closes at or above 390 on Jul expiry.

Breakeven Point Rs 376

Rationale:

Long build up is seen in the Cadila Futures’ where we have seen 6%(Prov) rise in the Open Interest with price moving up by 2%.

The stock price has broken out on the daily chart where it closed at highest level since 07 July

Short term trend of

Topics : Derivatives strategy Cadila Healthcare Markets Trading strategies HDFC Securities

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