Market did not care about negative news yesterday. This is first sign of positive momentum in market. FII are buyers. Perhaps market may open gap down tomorrow but there is high possibility of recovery. Still I hold view of strong resistance in the region of 5760/70. Nonetheless hedging with 5800 CALL options is must in this very uncertain situation about market direction.
Exit all short positions as soon as you get first chance to exit.
JP Associate is in downtrend and irrespective of market movement there is high possibility that stock would continue move south.
So with this bearish view:
Sell JP associate September Future at current market price around 33.5-33.7 and buy 32.5 August CALL around 2.50.
Execute both the treads simultaneously.
Maximum loss could be around 6000 but this trade has unlimited profit potential. If it touches previous lows around 28.5, before this month expiry profit could be more than 10000/-
OR
Simply buy 30.00 PUT of August expiry around 0.70/0.80. Maximum investment will be about 3200/- and profit will start if stock goes below 29.2.
Disclaimer: This blog does not take any responsibility of your profit/loss
Exit all short positions as soon as you get first chance to exit.
JP Associate is in downtrend and irrespective of market movement there is high possibility that stock would continue move south.
So with this bearish view:
Sell JP associate September Future at current market price around 33.5-33.7 and buy 32.5 August CALL around 2.50.
Execute both the treads simultaneously.
Maximum loss could be around 6000 but this trade has unlimited profit potential. If it touches previous lows around 28.5, before this month expiry profit could be more than 10000/-
OR
Simply buy 30.00 PUT of August expiry around 0.70/0.80. Maximum investment will be about 3200/- and profit will start if stock goes below 29.2.
Disclaimer: This blog does not take any responsibility of your profit/loss
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