I’ve purchased one lot of Solar Pharmaceutical 1800-put possibility for ₹29.85. Additionally, I purchased two a lot of HUDCO 215-put possibility for a median value of ₹6.6. Each are January expiries. What needs to be my goal and stop-loss for these positions? – Anish Das
Solar Pharmaceutical Industries (₹1,786.55): The inventory, which has been on a decline for the reason that starting of this yr, has now discovered help at ₹1,740.
Though Solar Pharma will carry some bearish bias till it trades beneath ₹1,830, the help at ₹1,740 would possibly no less than arrest the autumn if not assist in a restoration. However an increase to the closest resistance at ₹1,830 remains to be doable.
If such a transfer happens inside every week from now, the premium of 1800-put can depreciate to roughly ₹12.
Given the present circumstances, you’ll be able to both exit the commerce on the present stage with a revenue (because the premium is now at ₹34.15) or place a stop-loss at ₹10 and maintain the commerce for every week. Goal might be ₹48.
HUDCO (₹234.8): The inventory bounced off the help at ₹200 final week. Presently buying and selling at round ₹235, it faces a barrier at ₹250. Additionally, 240-strike name has seen quantity of promoting. Subsequently, that is additionally a possible resistance.
That mentioned, even when the autumn resumes on the again of the resistance at ₹235, it won’t result in a breach of the help at ₹200 earlier than the top of the present expiry.
Nevertheless, if the resistance at ₹250 is breached, we are able to count on one other leg of a rally, which may take the inventory to ₹280 within the near-term. Alternatively, a break beneath ₹200 can result in a fall to ₹170.
Contemplating the aforesaid components, you could maintain 215-put possibility, whose premium stood at ₹2.35 on Friday. However place a stop-loss at 0.90. In case the premium goes up, exit one lot at ₹8 and liquidate one other lot at ₹12. In order that the common exit value shall be ₹10.
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