Here's a Bull Spread Strategy on L&T Finance by HDFC Securities

Short term trend of the stock is positive where stock price is trading above its 5 and 20-day SMA

Bull Spread strategy on L&T Finance

Buy L&T Fin Oct 65 CALL at Rs 2.85 & simultaneously sell 75 Call at Rs 0.60

Lot Size 6800
 

Cost of the strategy Rs 2.15 (Rs 14620 per strategy)
 

Maximum profit Rs 53380 If L&T fin closes at or above 75 till October expiry.
 

Breakeven Point Rs 67.15

Rationale:

• Long build up is seen in the L&T fin Futures’ where we have seen 11%(Prov) rise in the Open Interest with Price rising by 4%.
   
• Stock price has broken out from the downward slopping trendline on the daily chart
   
• Short term trend of the stock is positive where