Traders and short term profit makers should buy the Hedging Option of Hexware on Monday 11 Feb 2013 before the announcement of its Dec Qtr results.
Buy 85 Call @ cmp 3.70 and 80 Put @ 3.30
Hence total cost of Investment = 7 * 2000 ( Lot Size of Hexware ) = 14,000
In the even of very good or bad result the stock will move upward or downward of more than or around 5% , hence the chances of gain are explained below.
Good Result stock moving up 5% = 86 Cost of Call likely 7 and cost of Put likely 2, Hence total selling cost = 9*2000 = 18,000, Therefore a gain of 4000/-.
Viceversa in case of a bad result and stock moving down of around 5%.
The above calculation has been taken on very conservative basis the are likely to be much higher.
Buy 85 Call @ cmp 3.70 and 80 Put @ 3.30
Hence total cost of Investment = 7 * 2000 ( Lot Size of Hexware ) = 14,000
In the even of very good or bad result the stock will move upward or downward of more than or around 5% , hence the chances of gain are explained below.
Good Result stock moving up 5% = 86 Cost of Call likely 7 and cost of Put likely 2, Hence total selling cost = 9*2000 = 18,000, Therefore a gain of 4000/-.
Viceversa in case of a bad result and stock moving down of around 5%.
The above calculation has been taken on very conservative basis the are likely to be much higher.
4 comments:
fantastic.... what is ur view on HDIl ?
HDIL Today Broke 70 and was trading around 66 for some time. The company fundamentals are good and it has good prospects in real estates in Mumbai, even I have visited their few projects, Talking about the stock price, presently one should buy HDIL in staggered manner as on every 3-5% fall in stock one should accumulate.When market will move up this will be first to move up and easily cross 100 in good market move and mood.
Any calla for Budget ..
Regards ,
Sam
Hey, thanks for the information. your posts are informative and useful.
Axis ESG Equity Fund
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