Option Strategy of the Day | Positive bias in HDFC Bank stock, use Bull Call Spread

HDFC Bank June series futures have seen a substantial rise in open interest, increasing by 4.76 lakh shares, a 75 percent jump, with the premium remaining at just 12 points.

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26 Aug, 2025 12:21

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HDFC Bank stock is witnessing a build up of a positive bias, with an increase in June series futures open interest, and a rise in in-the-money options open interest.

HDFC Bank June series futures have seen a substantial rise in open interest, increasing by 4.76 lakh shares, a 75 percent jump, with the premium remaining at just 12 points. The traded volume stands at 6.31 lakh shares, indicating positive interest in the counter.

The open interest in the in-the-money (ITM) June options contracts has risen by 6 lakh, and that in the out-of-the-money (OTM) options has fallen by 32 percent. The at-the-money (ATM) June implied volatility (IV) is 19.51, with a 10 percent change, suggesting keen market participant interest in the price action.

Technical View: HDFC Bank

Technically, HDFC Bank's stock has closed above its 200-day moving average (DMA) at Rs 1,520, suggesting a bullish reversal, with price action heading towards Rs 1,600 and Rs 1,650, which is the gap-down range. While volumes have remained sluggish, the trend is expected to witness bullish momentum once the price sharply penetrates over the 200-DMA. The support for the current bias stays at Rs 1,470, which needs to be adhered to on a closing basis.

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Strategy Recommended:

HDFC Bank Ltd Spread Trade: (Bull Call Spread - June Expiry)
Buy 1500 CE (call option) at Rs 70
Sell 1650 CE at Rs 14
Maximum Potential Profit: Rs 51,150 (173.96%)
Maximum Potential Loss: Rs 31,350 (-106.62%)
Maximum Risk-Reward Ratio: 1:1.63
Breakeven: Rs 1,557
Estimated Margin/Premium: Rs 29,404

The bull call spread is an options trading strategy involving two call options. This strategy is used when a trader expects a moderate rise in the price of an underlying asset. It is executed by buying call options at a specific strike price and selling the same number of calls of the same asset at a higher strike price.

This strategy allows traders to benefit from a rise in HDFC Bank's stock price while limiting the maximum loss, making it a favourable strategy given the current technical and derivative setup.

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