ICICIBANK Aug Trade [Target: 380]

ICICIBANK has been oscillating between 340 (Strong Support) and 385 (Strong Resistance). In the absence of any major triggers, it is expected to trade range bound

Here is a credit-neutral strategy for August

Bull Call Ratio Spread:
BUY 1x AUG 360CE
SELL 1x AUG 380CE
SELL 1x AUG 390CE

Cost of spread ~0
Profit :: Stock closes beyond 360 at expiry
Max Profit :: 27600 if ICICIBANK closes between 380 and 390
Breakeven at Expiry :: 410
SL :: If ICICI crosses 400 before expiry, book profit/loss
:: No SL needed on the downside
Note: It is a theta +ve trade, that is the more time it takes to reach target, higher the profit potential

These are just my 2 cents on the matter, please trade with caution and at your own risk

Happy Trading!

Comment:

Profit till date ~12,300

Hold till expiry for max profit , if stock stays < 380