 "Trading Strategy")
Derivative Strategy
BULL SPREAD Strategy on ACC
Buy ACC (25-MAY Expiry) 1,800 CALL at Rs 45.5 & simultaneously sell 1860 CALL at Rs 22.5
Lot Size: 250
Cost of the strategy: Rs 23 (Rs 5750 per strategy)
Maximum profit Rs 9,250 if ACC closes at or above 1,860 on 25 May expiry.
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Breakeven Point: Rs 1823
Approx margin required: Rs 15600
Rationale
>> Long build up seen in ACC Future, up 10 per cent addition in Open Interest (Prov) with price rising by 2 per cent
>> The stock price has broken out on the daily chart with higher volumes where it closes at highest level since 10 March 2023
>> Oscillators and momentum indicators are showing strength in the current uptrend
>> Cement stocks are placed well on the short term chart
>> Long build up seen in ACC Future, up 10 per cent addition in Open Interest (Prov) with price rising by 2 per cent
>> The stock price has broken out on the daily chart with higher volumes where it closes at highest level since 10 March 2023
>> Oscillators and momentum indicators are showing strength in the current uptrend
>> Cement stocks are placed well on the short term chart
Note: It is advisable to book profit in the strategy when ROI exceeds 20 per cent
Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
