 "Canara Bank alleges Rs 5 bn fraud by Kolkata-based R P Infosystems")
BULL SPREAD Strategy on Canara Bank
Buy Canara Bank (29-Sept Expiry) 240 Call at Rs 11.3 & simultaneously sell 250 Call at Rs 7.3
Lot Size 2,700
Cost of the strategy Rs 4 (Rs 10,800 per strategy)
Maximum profit Rs 16,200; If Canara Bank closes at or above Rs 250 on 29-Sept expiry.
Breakeven Point Rs 244
Approx margin required Rs 33,000
Rationale:
We have seen long build up in the Canara Bank futures, where we have seen 15 per cent addition (Prov) in Open Interest with price rising by 2.9 per cent.
The stock price has broken out from
