Bull spread Strategy on Sun Pharma
Buy Sun Pharma
Feb 650 Call at Rs 20 & simultaneously sell Feb 680 Call at Rs 10
Lot Size: 1,400
Cost of the strategy: Rs 10 (Rs 14,000 per strategy)
Rs 28,000 If Sun Pharma
closes at or above 680 on 25 Feb expiry.
Breakeven Point: Rs 660
-- Long build-up was seen in Sun Pharma
Futures’ where we have seen 7 per cent rise in the Open Interest with price rising by 2 per cent.
-- The stock price has broken out on the daily chart, where it closed at highest level since September 2018, with higher volumes
-- Oscillators like RSI and MFI are showing strength in the stock
-- Primary trend of the stock is positive where it is trading above its 100- and 200-day EMA.
-- The stock price has witnessed running correction of 10 per cent from the recent high