Bull Spread Strategy on Axis Bank by Nandish Shah of HDFC Securities

The stock price has already broken out from the downward slopping trendline on the daily chart

Bull spread Strategy on AXIS BANK

Buy AXIS BANK JUNE 760 CALL at Rs 25 & simultaneously sell 790 CALL at Rs 14

Lot Size: 1200

Cost of the strategy: Rs 11 (Rs 13,200 per strategy)

Maximum profit: Rs 22,800 if Axis Bank closes at or above 790 on 24 June expiry.

Breakeven Point: Rs 771

Rationale:
 

>> We have seen an aggressive long build up in the Axis Bank Futures where we have seen 22%(Prov) rise in the Open Interest with price rising by 2%.

>> The stock price has already broken out from the downward slopping trendline on