A Bull Call Spread on JP Hydro appears a good trade to put up on monday.
A Bull Call Spread - A Debit Spread
In this strategy you buy at the money call while simultaneously selling an out of the money call. For a nett debit.
In this particular trade, We are going to go Long 32.5 Strike and Short the 35 Call because I expect the price to close some where around 35.
Here is our trade:
JP Hydro Market Lot is 6250 Share.
Buy 1 JP Hydro Sep 32.5 Call @ 0.75 . Total cost is Rs.4687.5
Sell 1 JP Hydro Sep 35 Call @ 0.35. Total Credit is Rs. 2187.5
Total Cost of this strategy is Rs. 2500. This is also the total risk we have in this trade. Not bad for a potential profit of Rs.13,000.
All prices are Friday Close.
Disclaimer: This is my personal opinion about a possible trade not an Investment/Trading advice. Please use your discretion.
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