SBIN: Potential Channel trade

SBIN

- there was a big positive announcement for PSU Banks yesterday evening by Finance Minister
- On charts, we see SBIN trading near channel top levels


given the set up, one may consider a Bear Call Spread strategy

Sell 480 Call option currently around 8.6
Buy 510 Call option currently around 3.5

Net receivables in strategy Rs 7650/- per lot (yield potential of 11.5% on Margin requirement till 30 Sept expiry)
More importantly the strategy has inbuilt loss protection for a rise in stock price up to 485.10 on 30 Sept

Take care & safe trading...!!!


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