BPCL Derivative Expiry Strategy
0 likes32 views
The document outlines an expiry derivative strategy for BPCL that is bullish, with a maximum profit of Rs. 35940 and maximum loss of Rs. 7860. It recommends buying 600 BPCL December futures at Rs. 930 and selling 600 BPCL October call options at a strike price of Rs. 980 for a premium of Rs. 9.90. A pay-off table and chart are provided to illustrate potential profits and losses from the covered call strategy based on BPCL's closing price on expiry date of December 31, 2015.
BPCL Derivative Expiry Strategy
- 1. Expiry Derivative Strategy 1st Dec 2015 SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds View – Bullish Max. Profit of Rs. 35940 Max. Loss Rs. 7860 at SL level of 907 Expiry Date - 31st Dec 2015 Future BUY / SELL QTY SERIES TYPE Market Price Buy 600 Dec Fut 930 Option BUY / SELL QTY STRIKE PRICE SERIES OPTION TYPE Premium Sell 600 980 Oct CE 9.90 BPCL : CMP 927 Covered Call Pay-Off Table Pay off with Chart P R O F I T / L O S S * Please Refer Disclaimer on Websitewww.choiceindia.com Margin as per requirement. BPCL PAY-OFF 827.00 -93.10 847.00 -73.10 867.00 -53.10 887.00 -33.10 907.00 -13.10 927.00 6.90 947.00 26.90 967.00 46.90 987.00 59.90 1007.00 59.90 1027.00 59.90 -120.00 -100.00 -80.00 -60.00 -40.00 -20.00 0.00 20.00 40.00 60.00 80.00 827.00 847.00 867.00 887.00 907.00 927.00 947.00 967.00 987.00 1007.00 1027.00
- 2. Expiry Derivative Strategy 1st Dec 2015 SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds Contact Us www.choiceindia.comKunal Parmar Research Associate kunal.parmar@choiceindia.com Vikas Chaudhari Research Associate vikas.chaudhari@choiceindia.com www.choiceindia.comcustomercare@choiceindia.com Disclaimer This is solely for information of clients of Choice Broking and does not construe to be an investment advice. It is also not intended as an offer or solicitation for the purchase and sale of any financial instruments. Any action taken by you on the basis of the information contained herein is your responsibility alone and Choice Broking its subsidiaries or its employees or associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained in this recommendation, but Choice Broking or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this recommendation or any action taken on basis of this information. Technical analysis studies market psychology, price patterns and volume levels. It is used to forecast future price and market movements. Technical analysis is complementary to fundamental analysis and news sources. The recommendations issued herewith might be contrary to recommendations issued by Choice Broking in the company research undertaken as the recommendations stated in this report is derived purely from technical analysis. Choice Broking has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Choice Broking makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice. The information and any disclosures provided herein are in summary form and have been prepared for informational purposes. The recommendations and suggested price levels are intended purely for trading purposes. The recommendations are valid for the day of the report however trading trends and volumes might vary substantially on an intraday basis and the recommendations may be subject to change. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current performance may be unaudited. Past performance does not guarantee future returns. There can be no assurance that investments will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. • Firm interest of the stock / Instrument (s): - No. Amit Pathania Research Associate amit.pathania@choiceindia.com Kapil Shah Research Associate kapil.shah@choiceindia.com Vikas Chaudhari Digitally signed by Vikas Chaudhari DN: cn=Vikas Chaudhari, o=Choice Equity Broking Pvt Ltd, ou=Research Department, email=vikas.chaudhari@choiceindia.com, c=IN Date: 2015.12.01 14:49:52 +05'30'