Wednesday, 22 March 2017

Relcapital Bull Strategy-March Series

Hello Friends...!!

Relcapital is trading bullish with a gain of around 14% so far in this expiry. After sudden jump, it is seeing consolidation at higher levels. To play the next up move we can go with Ratio Spread Strategy:

View: The stock is likely to settle in the range of 620-680 in this expiry.


Buy 1 lot 620 Call@4.7
Sell 2 lots 640 Call@2.6

Total Premium Received: 0.5(750/- per strategy)

Lower Breakeven Point: 619.5
Upper Breakeven Point: 680.5

Profit Range-619.5-680.5
Max Profit if settles at 640: 20.5(30700/- per strategy)

Risk: Above 680.50, Unlimited(14% away from today's close of 594.4)

Hence the strategy will generate loss only if the stock goes above 680.50 levels else there would be profit ranging from 0.5 to 20.5 points.

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