Here is a Bull Spread Strategy on Divi's Lab by Nandish Shah of HDFC Sec

Bull spread Strategy on Divi's Lab

Buy Divi's Lab Dec 3850 Call at Rs 105 & simultaneously sell Dec 4000 Call at Rs 53
 

Lot Size: 200 

Cost of the strategy: Rs 52 (Rs 10400 per strategy)

Maximum profit: Rs 19,600 if Divi's Lab closes at or above 4,000 till 31 Dec expiry.

Breakeven Point Rs 3,902

Rationale:

• Short covering was seen in the Divi's Lab Futures' where we have seen 1 per cent fall in the Open Interest with price rising by 3 per cent.
   
• The stock Price has broken out on the daily chart with higher volumes where it closed at all