Bull spread Strategy on Dr Reddy s Labs Buy DR REDDY S MARCH 4,600 Call at Rs 182 & simultaneously sell 4,800 Call at Rs 106
Lot Size: 125
Cost of the strategy: Rs 76 (Rs 9,500 per strategy)
Maximum profit: Rs 15,500 If Dr Reddy s closes at or above 4,800 on March 25 expiry.
Breakeven point: Rs 4,676
Rationale: Long build-up was seen in the Dr Reddy Futures’ where we have seen 4 per cent (Prov) rise in the Open Interest with price rising by 1 per cent. The stock price has broken out on the daily chart where it closed above 200-day EMA with higher volumes. The stock price has formed double bottom around 4,380-odd levels
Jim Cramer says the room where Costco Wholesale (COST) shareholders gather provides a costly lesson in divergent shareholder interests, as those investors who hold Costco because they believe in the company are not among friends when it comes to many of their fellow stockholders..COST