Buy IDFC 160 call, sell 170 call: JK Jain

JK Jain of Karvy Stock Broking told CNBC-TV18, "In IDFC there has been long positions that were getting build up in this series. However, we have not seen a significant move in this stock. If you look at the other financial space other non banking financial companies (NBFCs) stocks or banking stocks have seen a good amount of momentum in this series."

"However, IDFC still the positions are held on and we are seeing a quite a bit good roll over that is happening. Even in the next series money Call options like 170 Call option is seeing good amount of buying. So, on that basis we are giving a bull Call spread where in we recommend buying 160 Call which is trading close to around Rs 6-5.5 and sell the higher Call option of 170 Call which is trading close to around Rs 2.5. The net cost of this strategy would be Rs 3 and the maximum gain will be Rs 7 if the stock expires above Rs 170 for the January series," he added.

"We expect the stock to see a momentum and head above Rs 170 levels in the January series. However, as the January series is too long even for trading perspective one can trade this strategy with a spread of Rs 3 we expect this spread to widened to Rs 5.5-6 in the next couple of weeks. So even for trading perspective one can look at Bull Call Spread in IDFC between 160 Call and 170 Call," he said.