Bull Spread strategy on JSW Steel by Nandish Shah of HDFC Securities

The stock price of JSW Steel has broken out on the daily line chart with higher volumes to close at all-time high levels

Bull spread Strategy on JSW STEEL

Buy JSW STEEL 780 CALL at Rs 23.3 & simultaneously sell 810 CALL at Rs 13.30

Lot Size: 1350

Cost of the strategy: Rs 10 (Rs 13,500 per strategy)

Maximum profit: Rs 27,000 if JSW STEEL closes at or above Rs 810 on 26 August expiry

Breakeven Point: Rs 790

Rationale:
- We have seen a long build up in the JSW steel Futures, where we have seen 2%(Prov) rise in the Open Interest, with the price rising by 2.50%.

- The stock price has broken out