This stock is showing a squeeze. The bandwidth is at a six month low. Prices have already started to move up and it has gained almost 3% in yesterday's short 2 hour session. Given this background, a breakout is almost certain and buying the May 85 Call Option can give good returns.
Below is the strategy performance. The May 85 Call closed at Rs 5.70 so the break even point is around Rs 90.70
5 comments:
hi...for a sum of 10 K ..i had bought May 5800 calls at 10 ...now thay are 1.30..suppose Nifty is at 5450 by May 11 ...what value these willl be ...can u calculate
How about Patni?
Hi Kaushik, long time. Let me have look at Patni.
Jonak, as you must be aware,buying deep OTM calls / puts is not a good idea in the first place - even if Nifty reaches 5450 (which is a very remote possibility)your call won't be worth much than what it is today.
sunilji thanks for your expert opinion.
Thanks Doc. You're welcome.
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