Here's a Bull Spread strategy for L&T Finance Holdings by HDFC Securities

The short term trend of the stock is positive where it is trading above its 5 and 20-day SMA.

Derivative recommendations on L&T Finance

Bull Spread strategy on L&T Finance
 

Buy L&T Finance 65 Call at Rs 2.5 & simultaneously sell 70 call at Rs 1
 

Lot Size: 5600
 

Cost of the strategy: Rs 1.5 (Rs 8400 per strategy)
 

Maximum profit: Rs 19,600 if L&T Finance closes at or above Rs 70 on June expiry
 

Break-even Point: Rs 66.5

        

Rationale:

Long build up is seen in the L&T Finance Futures’ where we have seen 17%(Prov) rise in the Open Interest with price moving up by 4.5 per cent.
 

The stock price has broken out on the daily