Sell NIFTY-5200-CALL-FEB @ 48.40
So if NIFTY Remain below 5200 till Feb End (Feb 23,2012) we will pocket 48.4*50-300 = 2120 on investment of 25,000 a return of 8.48% in 37 days..
=happy investing
Tuesday, January 17, 2012
Buy NIFTY-4600-PUT-JAN @ 4.55 and Sell NIFTY-5200-CALL-FEB @ 46.85
Buy back NIFTY-4600-PUT-JAN @ 4.10
Sell NIFTY-5200-CALL-FEB @ 48.40
So if NIFTY Remain below 5200 till Feb End (Feb 23,2012) we will pocket 48.4*50-300 = 2120 on investment of 25,000 a return of 8.48% in 37 days..
=happy investing
Sell NIFTY-5200-CALL-FEB @ 48.40
So if NIFTY Remain below 5200 till Feb End (Feb 23,2012) we will pocket 48.4*50-300 = 2120 on investment of 25,000 a return of 8.48% in 37 days..
=happy investing
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10 comments:
Dear Sir,
what is your view about Aarti Ind ( rs 49.5)? Is it worth long term ??
Hi Prahlad Sir,
I hope you mentioned about selling the call rather than PUT, because, I checked the rates and only the CALL Option rates match with ur recommendation not PUT.
regards,
WhatsUP,
I took you as a pure "value investor". This Nifty Options is pure speculation.
Anonymous:
Options are speculative by definition..
but the fact that we are covered from making a loss if NIFTY feb option expiry value is less than 5240 levels its a fairly safe bet.
(I think..)
see its just one lot of option to keep your speculative instincts alive and kicking..
jan opitions started dec 30 with nifty at 4624 .. and 5240 is a good 616 points.
=happy investing
whatsup-indianstokideas.blogspot.com
Anonymous:
Aarti has always been attractive.. infact I was invested in aarti but no longer..
consistent dividend paying company..
the only thing that is of concern is the amount of debt in their books..
also please look at following link..
http://echa.europa.eu/chem_data/authorisation_process/candidate_list_table_en.asp#download
EU is going to ban certain chemicals.. hope that aarti does not produce any chemicals in the banned list..
also with rising crude prices and saudi arabia setting up a plant to produce value added products in saudi itself.. be careful if input for the chemicals manufacturer by aarti is based on crude oil. .. or part of the banned chemicals in EU..
other than these two concerns and debt AArti looks good to me..
=happy investing
whatsup-indianstockideas.blogspot.com
MyOwnWorld..InMyOwnWords:
yes you got it right .. it should Be
SELL NIFTY-5200-CALL-FEB @ 46.85..
Well now its available at 73.10 so its a much better price to enter.
I will update the blog thanks for pointing it out!!
=happy investing
whatsup-indianstockideas.blogspot.com
Thanks Prahlad for the clarification, I have shorted at 60 today, so not in a hurry to book profit/loss. Will surely share as and when I book.
Jayant Agro finally moving by the way.
regards
What about Deepak Nitrite? Looks consistently decent except not traded much in volumes.
Anonymous:
deepak nitrite looks good.. low volumes.. and 52 week low prices..
agro chemicals and fine chemicals.. all are great area's..
low volumes indicate its a great entry time.. when the prices are so low that the Market maker is not interested in generating volumes..
I will certainly look further into deepak nitrite..
I do see that generally indian chemical companies are quoting at steep discount.. even though India is top5 (I think worldwide) in chemical manufacturing..
Do you have any idea why indian chemical companies are at a discount?
=happy investing
whatsup-indianstockideas.blogspot.com
MyOwnWorld..InMyOwnWords:
yes.. jayant finally moving.. results are out and derivatives plant has also started..
Lets keep our fingers crossed..
still need to look at the result in detail..
will post in a few days..
=happy investing
whatsup-indianstockideas.blogspot.com
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