Here's a Bull Spread strategy for Cadila Healthcare by HDFC Securities

Bull Spread strategy on Cadila

Buy Cadila 370 Call at Rs 12.60 & simultaneously sell 390 call at Rs 6.60
 

Lot Size: 2,200
 

Cost of the strategy Rs 6 (Rs 13200 per strategy)
 

Maximum profit Rs 30,800 if Cadila closes at or above 390 on Jul expiry.
 

Breakeven Point Rs 376

        

Rationale:

Long build up is seen in the Cadila Futures’ where we have seen 6%(Prov) rise in the Open Interest with price moving up by 2%.
 

The stock price has broken out on the daily chart where it closed at highest level since 07 July
 

Short term trend of