Bull Spread strategy on MUTHOOT FINANCE
Buy Muthoot Finance January 750 Call at Rs 25 & simultaneously sell 800 call at Rs 9
Lot Size: 1,500.
Cost of the strategy: Rs 16 (Rs 24,000 per strategy)
Maximum profit: Rs 51,000 If Muthoot Finance closes at or above Rs 800 on January expiry.
Breakeven Point: Rs 766
Rationale:
-- We have seen Long rollover in the Muthoot Finance to the January series with price going up by 0.87 per cent.
-- Stock price has already given breakout on the daily chart by closing above the resistance level of Rs 737 on last Monday with higher volumes.
-- Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.
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