Wednesday, 1 February 2017

IDEA Option Trade-Feb Expiry

Hello Freinds..!!

After the much awaited Budget Event, now lets focus on stock specific opportunities.

Idea in the past 10 trading sessions has rallied more then 70% to the 115 zone. Participants who are Bullish for the stock & would like to buy if it comes again to a attractive lower level can have one Option Strategy. Traders who are least risk tackers can go with following Trade:

View: Stock looks to be ib Bulls grip, chances of correction from 110 to 80 zone(27%) in the current series is least probable. On extreme side if it comes to 80 level then it becomes good opportunity to BUY the stock. at that point of time 80 Put Option Sell trade will create losses but at the same time you are buying stock at very attractive buying levels.

Action: Sell 80 Put@0.35; Lot Size: 7000; Premium Inflow: 2450/- per lot

Risk: Below 79.65 levels only.
Reward: 0.35 if settles above 80 zone in Feb Expiry.
Holding Period: 21 days
Investment: 2Lacs (assuming 25% margin blocked)
Expected Profit: 2450
Absolute Return: 1.22%( for 21 days)

Aggressive traders can go with further option sell in the premium range of 0.35-0.7, due to any fall in stock prices.

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