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Derivative Strategy
Bull Spread Strategy on Indian Oil Corporation (IOC)
Buy IOC (25-Jan Expiry) 83 CALL at Rs 1.10 & simultaneously sell 85 CALL at Rs 0.40
Lot Size: 9,750
Cost of the strategy: Rs 0.70 (Rs 6,825 per strategy)
Maximum profit: Rs 12,675; if IOC closes at or above Rs 85 on 25-Jan expiry.
Breakeven Point: Rs 83.70
Approx margin required: Rs 28,400
Rationale:
- We have seen long build up in the IOC futures on Thursday, where we have seen 2 per cent addition (Prov) in Open Interest with price rising by
