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Bull Spread Strategy on Aurobindo Pharma
Buy Aurobindo Pharma Dec 900 Call at Rs 30 and simultaneously sell Dec 960 Call at Rs 10
Lot Size: 650
Cost of the strategy: Rs 20 (Rs 13,000 per strategy)
Maximum profit: Rs 26,000 if Aurobindo Pharma closes at or above 960 till 31 Dec expiry
Breakeven Point: Rs 920
Rationale:
-- Long build up was seen in Aurobindo Pharma futures where we have seen a 16 per cent rise in the Open Interest with price rising by 3%
-- Stock Price has broken out from the downward slopping trendline, adjoining the highs
