Bull Spread strategy on BEL
Buy BEL OCTOBER 115 Call at Rs 3.70 & simultaneously sell 125 call at Rs 0.70
Cost of the strategy Rs 3 (Rs 18000 per strategy)
Maximum profit Rs 42000 If BEL closes at or above 125 on October expiry(31-Oct)
Break even Point Rs 118
Long build up is seen in the BEL Futures’ during the October series till now, where we have seen more than 20% rise in Open Interest with price rising by 4.5 per cent.
In the option segment, we have seen significant addition in 120 strike Call Option during the last few days, suggesting Call buying.
Stock price has already broken out on the weekly chart by closing above the resistance level of 113
Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.
Stock price is trading above its 5,20 and 200 day sma, Indicating positive trend in all the time frames