Dialing Profits: Bull Call Ladder Spread Rings Opportunity in Bharti Airtel

Bharti Airtel has emerged as a strong candidate for bullish trading strategies after breaking out of a consolidation range on its daily chart. The stock's upward momentum is supported by increased trading volumes and a rising Relative Strength Index (RSI) of 66.7, indicating robust buying interest. Analysts suggest that a decisive close above the critical level of ₹1,760 could propel the stock toward short-term targets of ₹1,850 and ₹1,900, with ₹1,700 acting as a key support level.

 

To capitalize on this bullish outlook, traders are advised to deploy a Bull Call Ladder Spread strategy. This involves buying one at-the-money or in-the-money call option, selling one out-of-the-money call option, and selling another higher out-of-the-money call option. This approach offers limited risk while allowing traders to benefit from moderate price increases in Bharti Airtel's stock. However, excessive upward movement could result in losses due to the additional short call.

 

Source: The Economic Times