Buy BHARAT FORGE MAY 650 CALL at Rs 25 and simultaneously sell 680
CALL at Rs 15
Lot Size: 1,500
Cost of the strategy: Rs 10 (Rs 15,000 per strategy)
Maximum profit: Rs 30,000 If Bharat Forge closes at or above 680 on 27 May expiry.
Breakeven Point: Rs 660
Rationale:
-- We have seen long build-up in the Bharat Forge Futures during the May series till now where we have seen 7 per cent rise in the Open Interest with price rising by 7 per cent.
-- The stock's primary trend is positive where it is trading above all