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.
