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June 22, 2014
Time: 11.45 am
Weekly Strategy: Sell Rel Capital 570 Put option and 670 Call option.
- Reliance Capital has been making big moves.
- It touched a high of nearly 680 and then during the market correction fell to 570.
- Then recovered and now trading around 620 for the last few sessions.
- It is taking good support around this range.
- So this stock falling below 570 in the next four days is highly unlikely.
- So it is safe to sell 570 Put option.
- Overall market trend remains cautious despite world markets making all time highs.
- So this stock going above 670 is also difficult.
- So we suggest selling 570 Put and 670 Call.
- Both closed at Rs 2.25 on Friday, giving Rs 4500 premium per lot.
- This works out to be more than 4% return as the Span Margin is about Rs 1,03,000.
- Considering the lower risk and only four more trading sessions left, this return is very good.
Comments
Sir Pls clarify
ReplyDeleteRs 1,03,000 margin is for both Call & Put?
Or Call Rs 1,03,000 & Put again Rs 1,03,000 margin?
For both Call & Put.
DeleteThank u
ReplyDeleteSir are you planning any paid classes for July Month End?
ReplyDeleteDear Sir - I would also like to know if you are planning for any programmes in the near future and if yes, I would like to participate - Sekar
ReplyDeleteWe conducted some workshops in the last few months. We advertised in Nanayam Vikatan and Economic Times. When I conduct the next workshop, I will inform thorough this blog.
ReplyDeleteThank you sir. Look forward to participating in the program
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