Bull spread Strategy on Bajaj Auto
Buy Bajaj Auto Dec 3,150 Call at Rs 118 & simultaneously sell Dec 3,300 Call at Rs 61
Lot Size: 250.
Cost of the strategy: Rs 57 (Rs 14,250 per strategy)
Maximum profit: Rs 23,250 If Bajaj auto closes at or above 3,300 till Dec 31 expiry
Breakeven Point: Rs 3,207
Rationale:
-- Long build-up is seen in the Bajaj Auto Futures’ where we have seen 11 per cent rise in the Open Interest with price rising by 3 per cent
-- Stock price has broken out on the daily chart with higher volumes where it closed at nine-month high
-- Primary trend