4th January 2006
Today we have an interesting trade in ITC. This was it know as the ratio back spread. The assumption is ITC will move up.
The trade is as follows:
Market Lot of ITC 2250
Tuesday close price 143.1
The trade:
Sell 1 ITC Jan 145 Call @ 3.75
Buy 2 ITC Jan 150 Call @ 1.90
The total risk with this strategy is Rs 313
The Maximum profit possible is unlimited
Good Luck!
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