In follow up to my earlier post, I am publishing an idea. Please consult your advisor or broker before executing any order. Please do not take any decision basis my suggestion.
Idea Ref# - Bharti2712
Buy Bharti Jul 2012 Fut at 312.00; and
Buy Bharti Jul 2012 320 put at 12.
Rationale: The stock has not participated in the Nifty's 4800 to 5300 rally. After a long time the stock kas showed some strength and if Nifty does not correct much the stock can have a sizable up move and can out perform the index and most other heavy weights
Max loss from the strategy would be Rs. 4.00 per lot. (Lot size: 1000), irrespective of where the stock trades on the date of the expiry(26/07/2012).
Profit is unlimited once the scrip crosses 324.00 on the July Futures Quote, which is just about 4% from here. My gut feeling is the stock can cross 340 before expiry not withstanding any major negative new flow globally.
Stop Loss: Not required.
Regards
SVJ
Disclaimer: I have executed this strategy
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