Tuesday, December 18, 2012

Options Trading Plan for Near Term

Options Trading Plan for Dec-2012

BHEL: cmp = 221, Mkt lot= 1000
Buy BHEL 220 CE Jan @11.00 X 1 lot = 11.00 ,  tgt 30, stop loss 5.00
hedge by buying BHEL 210 PE JAN @4.00 X 3 lots = 12.00, tgt 10, stop loss 1.5
expected profit 30-11-12= 7
ROI = 7/23 = 30%

NMDC: cmp = 163, Mkt lot=2000
Buy NMDC 160 CE Jan @8.50 X 1 lot = 8.50, tgt 25, stop loss 3.50
hedge by buying NMDC 160 PE Jan @3.00 X 3 lots = 9.00, tgt 10.00, stop loss 1.00
expected profit = 25-8.50-9 =7.50
ROI=7.50/17.50 = 42.85%

IRB: cmp = 129, Mkt lot=2000
Buy IRB 120 CE Jan @7.00 X 1 lot = 7.00, tgt 18.00, stop loss 2.50
hedge by buying IRB 110 PE Jan @4.00 X 2 lots = 8.00, tgt 10.00, stop loss 1.50
expected profit = 18-7-8 =3
ROI=3/15 = 20%