Nandish Shah recommends Bull Spread on Glenmark Pharma for March series

The derivative analyst from HDFC Securities recommends to Buy Glenmark Pharma 440 CALL at Rs 7 & simultaneously sell 450 CALL at Rs 4 of March series

Derivative Strategy

BULL SPREAD Strategy on Glenmark Pharma

Buy Glenmark Pharma (29-March Expiry) 440 CALL at Rs 7 & simultaneously sell 450 CALL at Rs 4

Lot Size: 1,450

Cost of the strategy: Rs 3 (Rs 4,350 per strategy)

Maximum profit: Rs 10,150 If Glenmark closes at or above 450 on 29 March expiry.

Breakeven Point: Rs 443

Approx margin required: Rs 22,000

Rationale:

>> Seen long build up in the Glenmark Future, around 2 per cent addition in Open Interest with price rising by 1.2 per cent

>> Short term trend of the stock turned bullish as stock price is trading above its 11