Buy JUBILANT FOODWORKS JUNE 3300 CALL at Rs 87 & simultaneously sell 3500 CALL at Rs 37
Lot size: 250
Cost of the strategy: Rs 50 (Rs 12,500 per strategy)
Maximum profit: Rs 37,500 if Jubilant FoodWorks closes at or above 3,500 on 24 June expiry.
Breakeven point: Rs 3.350
Rationale:
-- We have seen long build-up in the Jubilant FoodWorks Futures till now during the June series where we have seen 13 per cent rise in the Open Interest with price rising by 3.5 per cent
-- The stock price has broken out on the daily line chart by surpassing the resistance level of 3,204 with higher volumes
-- The stock price is forming bullish higher top, higher bottom formation on the weekly and monthly charts
-- Plus DI is trading above Minus DI while ADX line is placed above 25, indicating momentum in the current uptrend
-- Oscillators like RSI and MFI is placed above 60 and slopping upwards, indicating strength in the current uptrend
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
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