Bull Spread Strategy on LTI
Lot Size 150
Buy Larsen & Toubro Infotech Nov 7,000 CALL at Rs 250 & simultaneously sell 7,200 CALL at Rs 166
Cost of the strategy Rs 84 (Rs 12,600 per strategy)
Maximum profit Rs 17,400 If LTI closes at or above 7,200 on 25 Nov expiry
Breakeven Point Rs 7,084
- We have seen long build up in the LTI Futures, where we have seen 6%(Prov) rise in the Open Interest with price rising by 2.4%.
- Stock price has broken out from the downward sloping trendline on the daily chart.
- RSI and MFI Oscillators are placed above 60 and sloping upwards, Indicating strength in the current uptrend.
- Plus DI is trading above Minus DI while ADX line is placed above 25, Indicating momentum in the current uptrend.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.