MUMBAI: Did you miss the unprecedented PSU rally yesterday? For eg, in SBI, Hemant Nahata of IIFL suggests buying a 320 call and selling a 360 call expiring on November. The maximum profit is Rs 25 (difference between the two strikes minus the debit) and happens when the stock expires at Rs 360. The maximum a trader could lose is the net debit of Rs 15 which happens if SBI ends below Rs 320 at expiry . The Rs 320 option will be in-the-money by Rs 80, but the sold Rs 360 call will be worth Rs 40.

Source: Economic Times October 26, 2017 02:32 UTC