Derivative Strategy
BULL SPREAD Strategy on Infosys
Buy INFY (25-August Expiry) 1520 CALL at Rs 41.50 & simultaneously sell 1580 CALL at Rs 18.50
Lot Size 300
Cost of the strategy Rs 23 (Rs 6,900 per strategy)
Maximum profit Rs 11,100 If Infy closes at or above Rs 1,580 on 25 August expiry.
Breakeven Point Rs 1,543
Approx margin required Rs 23,000
Rationale:
-
We have seen long build up in the Infy futures on Thursday, where we have seen 22 per cent addition (Prov) in Open Interest with price rising by 3 per cent.
- Short term trend of the stock turned