Friday, December 09, 2005

A Bullish Spread in Ashok Leyland

Our Trade for today is in Ashok Leyland. This is a bullish spread between the 32 and 35 strike prices. Our assumption is that there will be a moderate rise in prices in the near future.

The trade is as follows:

Buy 1 Ashok Ley Dec 32 Call @ 1.45

Sell 1 Ashok Ley Dec 35 Call @ 0.60

Our Cost / Max risk is Rs. 8118

Our Max Profit would be Rs 20500

The Market Lot of Ashok Leyland is 9550 Shares.

Closing Price 32.75

All Price Thursday Close.

Good Luck

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