I am back with a few trading ideas for the new contract. As luck would have it, it is Bharti again. Its not that I track only Bharti, but it is that the stock is poised for a break out. This is one stock that has not participated in any bull run for a long time now.
Idea Ref# - Bharti2707
Buy Bharti Aug 2012 Fut at 302.00; and
Buy Bharti Aug 2012 320 put at 20.50
Rationale: The stock has not participated in the Nifty's 4800 to 5300 rally, but has participated in the down move. Some catch up rally will give handsome gains in the counter
Max loss from the strategy would be Rs. 2.50 per lot. (Lot size: 1000), irrespective of where the stock trades on the date of the expiry(30/08/2012).
Profit is unlimited once the scrip crosses 322.50 on the August Futures Quote.
Stop Loss: Not required.
Regards
SVJ
Disclaimer: I have executed this strategy
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