The outlook for Jet Airways ( ₹747) appears positive. It faces a hurdle at ₹806 and support at ₹646. A close above ₹921 will change the long-term outlook to positive. In that case, Jet Airways can rally above ₹1,380.
F&O pointers: Jet Airways accumulated 37.57 lakh shares in open interest. Trading in option indicates the stock could face resistance at ₹800 and support at ₹700.
Strategy: Traders could consider a bull-call spread on Jet Airways. This can be initiated by buying ₹760-call (premium of ₹29.35) and simultaneously selling the ₹780-call, which closed with a premium of ₹21.5.
This strategy will cost an initial outflow of ₹7,065 (or ₹7.85 a contract) for traders and that could be the maximum loss one can incur.
For that to happen, shares of Jet Airways will have to close at or below ₹760 at the time of expiry.
A maximum profit of ₹10,935 is possibleTraders could hold the position till expiry or if the underlying stock moves above ₹780. In the event of the stock failing to sustain the current momentum, traders can exit the position with a loss of ₹4,500.
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