Derivative Strategy
BULL SPREAD Strategy on PFC
Buy PFC (29-June Expiry) 170 CALL at Rs 6.2 & simultaneously sell 180 CALL at Rs 4.15
Lot Size: 6,200
Cost of the strategy: Rs 2.05 (Rs 12,710 per strategy)
Maximum profit: Rs 18,290 If PFC closes at or above 175 on 29 June expiry.
Also Read
Breakeven Point: Rs 172.05
Approx margin required: Rs 37,000
Rationale:
>> Long rollover seen to the June series in PFC Future, with 9 per cent addition in Open Interest (Prov) with price rising by 2.5 per cent
>> The stock price has broken out on the daily chart with higher volumes where it closes at highest level since 15 May 2023
>> The stock price has been forming bullish higher top higher bottom candle stick pattern on the daily chart
>> Oscillators and momentum indicated showing strength in the current uptrend
Note: It is advisable to book profit in the strategy when ROI exceeds 20 per cent
Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
