Buy Glenmark Pharma 860 Call; sell 880 Call: VK Sharma

VK Sharma of HDFC Securities told CNBC-TV18, "Glenmark Pharma has done well and because we are reaching the fag end of the settlement and people believe that the valuations of pharma companies have reached where it doesn’t insight them to buy or make them motivating levels."

"I am suggesting a bull spread that means you are capping your gains by foregoing anything if the stock goes beyond the Call that you are selling. I am suggesting buying 860 Call at Rs 18 and selling 880 Call at Rs 12. So essentially you are limiting your upside but also ensuring that your cost is reduced to Rs 6 irrespective of what happens to the stock price and the maximum profit that could happen is Rs 14. So the maximum gain is Rs 14 and maximum loss could be Rs 6," he said.