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Nandish Shah recommends a Bull Spread on Glenmark Pharma for March expiry

The derivative analyst from HDFC Securities recommends to Buy Glenmark 460 Call and simultaneously Sell 480 Call of the March series.

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Nandish Shah Mumbai
Derivative Strategy

Bull Spread Strategy on Glenmark Pharma

Buy Glenmark Pharma (29-March Expiry) 460 CALL at Rs 12.5 & simultaneously sell 480 CALL at Rs 6.10

Lot Size: 1,450

Cost of the strategy: Rs 6.4 (Rs 9,280 per strategy)

Maximum profit: Rs 19,720; If Glenmark closes at or above Rs 480 on 29 March expiry.

Breakeven Point: Rs 466.4

Approx margin required: Rs 22,744

Rationale:
  • We have seen long rollover to the March series in the Glenmark Future, where we have seen 11 per cent addition in Open Interest with price rising by 1 per cent.
     
  • Primary trend of the stock

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First Published: Feb 24 2023 | 8:21 AM IST

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