I’ve purchased one lot of Solar Pharmaceutical 1800-put choice for ₹29.85. Additionally, I purchased two a lot of HUDCO 215-put choice for a mean worth of ₹6.6. Each are January expiries. What must 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 because the starting of this 12 months, has now discovered help at ₹1,740.
Though Solar Pharma will carry some bearish bias till it trades under ₹1,830, the help at ₹1,740 may a minimum of arrest the autumn if not assist in a restoration. However an increase to the closest resistance at ₹1,830 remains to be potential.
If such a transfer happens inside per week from now, the premium of 1800-put can depreciate to roughly ₹12.
Given the present situations, you may 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 per week. Goal may 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 a great quantity of promoting. Due to this fact, 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 tip of the present expiry.
Nonetheless, 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. Then again, a break under ₹200 can result in a fall to ₹170.
Contemplating the aforesaid elements, it’s possible you’ll maintain 215-put choice, 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 worth will probably be ₹10.
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