Buy Ashok Leyland 95 Call, sell 100 Call: Chandan Taparia

Chandan Taparia of Anand Rathi Securities told CNBC-TV18, "We have a positive view on selective auto counters. Last time we have recommended covered call in TVS Motor Company and this time we are coming out with bull call spread in Ashok Leyland. After the recent consolidation, Ashok Leyland is all set to move towards Rs 100 and higher territory.""We are recommending to go for bull call spread by buying 95 Call which is trading near Rs 3.5 and sell 100 Call which is trading near Rs 1.75. In the entire strategy, break even is near Rs 96.75 and risk is near Rs 7,000. If the stock moves towards Rs 1,000 as per the expectation then we will get profit of around Rs 13,000. Overall trend is positive and we are suggesting the strategy to get the positive rangebound move and also giving an attractive risk reward ratio as 1:2," he said.