 "Stock price has broken out from the downward slopping trendline on the daily chart")
Bull Spread strategy on L&T Finance
Buy L&T Fin Oct 65 CALL at Rs 2.85 & simultaneously sell 75 Call at Rs 0.60
Lot Size 6800
Cost of the strategy Rs 2.15 (Rs 14620 per strategy)
Maximum profit Rs 53380 If L&T fin closes at or above 75 till October expiry.
Breakeven Point Rs 67.15
Rationale:
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Long build up is seen in the L&T fin Futures’ where we have seen 11%(Prov) rise in the Open Interest with Price rising by 4%.
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Stock price has broken out from the downward slopping trendline on the daily chart
- Short term trend of the stock is positive where
