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Time: 2.45 pm
Weekly Strategy: Sell Auro Pharma 500 Put option and 660 Call option.
- Auro pharma broke out once again against every body's caution that correction is inevitable due to vertical rise.
- In the last phase, it took very strong support at 480 a number of times.
- In fact we sold 480 put option last week and we are sitting with huge profits now.
- Since the stock has broken out, we can expect the support at 500.
- So it is reasonably safe to sell 500 Put.
- At the same time, we do not think that Auro Pharma will go beyond 660 as there will be lot of profit booking on every rise.
- So we suggest selling both 500 put and 660 call option.
- On Friday 500 Put closed at Rs 2.30 and 660 Call closed at Rs 2.05.
- Total premium is Rs 8700 per lot.
- Total Span margin is around Rs 1,83,000.
- If Auro Pharma trades between 500 and 660, the total profit of Rs 8700 works out to be a return of 4.75% for the Span margin.
- Considering the lower risk, it is a good return.
Here is a question. Anybody who answers this question will receive gift worth Rs 500. In case of many right answers, the first received one will receive the gift. So send your answer to my email id: ashwin95@gmail.com with your contact number.
Q: Which F&O contract is trading around 40% higher than the spot price?
Comments
Any views about previous week Auro Pharma 600 call?
ReplyDeleteLast Week we suggested Bank Nifty and the week before Mcdowell. We did not suggest Auro Pharma in the last two weeks. But we sold Auro Pharma 460 Put and 600 Call at the beginning of this series. As the shares rose, now I have 460, 470, 480, 490, 500, 510, 520, 530 and 540 Puts and 600, 620, 640 and 660 Calls. There are three public holidays, time value will work in our favor. If Auro Pharma continue to rise above 580, then I will cut 600 Call and move to 620 Call.
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