Here's a Bull Spread Strategy on L&T by Nandish Shah of HDFC Securities

Bull spread Strategy on Larsen & Toubro

Buy L&T 940 Call at Rs 17 & simultaneously sell 980 Call at Rs 5

Lot Size 550. 

Cost of the strategy Rs 12 (Rs 6600 per strategy)

Maximum profit Rs 15400 If Larsen closes at or above 980 till 29 October expiry.

Breakeven Point Rs 952

Rationale:
 

 Long build up is seen in the L&T Futures’ till now in the October series where we have seen 23% rise in the Open Interest with Nifty rising by 10%.

 Stock Price broken down on the daily chart where it closed