Here's a Bull Spread Strategy on Manappuram Finance by HDFC Securities

Long build up is seen in the Manappuram fin Futures' where we have seen 7% (Prov) rise in the Open Interest with Price closing flat

Premium

Primary trend of the stock is positive where stock price is trading above its 200-day SMA

1 min read Last Updated : Sep 18 2020 | 8:04 AM IST

Bull Spread strategy on Manappuram Finance

Buy Manappuram Fin Sept 160 CALL at Rs 4.75 & simultaneously sell 170 Call at Rs 1.75

Lot Size 6000

Cost of the strategy Rs 3 (Rs 18000 per strategy)

Maximum profit Rs 42000 If Manappuram fin closes at or above 170 till September expiry.

Break-even Point Rs 163

Rationale:

Long build up is seen in the Manappuram fin Futures’ where we have seen 7% (Prov) rise in the Open Interest with Price closing flat.

After breaking out from the downward slopping trendline on 11th Sept, Stock price is consolidating in the narrow

Topics : derivatives trading Derivatives strategy Market technicals Markets Stock calls Manappuram Finance

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

Need More Information - write to us at assist@bsmail.in