Sun pharma at the resistance zone. Even if it breaks out, the next big resistance is at 640-650 zone. The stock gave a good move in November and December and is consolidating and trying to break the long-term trend.
The idea is to do a ratio spread by buying 1 lot 640CE and selling 2 lots 650CE. The trade can be managed by selling puts if the stock breaks out. The initial trade has no downside risk and upside breakeven at around 665 with max profit at 650.
The idea is to do a ratio spread by buying 1 lot 640CE and selling 2 lots 650CE. The trade can be managed by selling puts if the stock breaks out. The initial trade has no downside risk and upside breakeven at around 665 with max profit at 650.