Bear Put ratio: Buy L&T 1550 Put, Sell 1500 Put, says Jain

JK Jain, Karvy Stock Broking is advising a bear put in L&T wherein one can buy 1550 put which is trading around close to Rs 20 and simultaneously sell 1500 put which is trading around Rs 7.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney
moneycontrol.com

Home » News » Stocks Views

Nov 20, 2012, 01.22 PM | Source: CNBC-TV18

Bear Put ratio: Buy L&T 1550 Put, Sell 1500 Put, says Jain

JK Jain, Karvy Stock Broking is advising a bear put in L&T wherein one can buy 1550 put which is trading around close to Rs 20 and simultaneously sell 1500 put which is trading around Rs 7.

Like this story, share it with millions of investors on M3

Bear Put ratio: Buy L&T 1550 Put, Sell 1500 Put, says Jain

JK Jain, Karvy Stock Broking is advising a bear put in L&T wherein one can buy 1550 put which is trading around close to Rs 20 and simultaneously sell 1500 put which is trading around Rs 7.

Post Your Comments

Share Cancel

JK Jain (more)

Derivative Analyst, Karvy Stock Broking | Capital Expertise: F&O

JK Jain, Karvy Stock Broking is advising a bear put in Larsen and Toubro (L&T) wherein one can buy 1550 put which is trading around close to Rs 20 and simultaneously sell 1500 put which is trading around Rs 7.

Jain told CNBC-TV18, “Two-thirds of the Nifty stocks are looking weak. Particularly if you look at the capital goods space after the IIP data we have seen gradual unwinding of long positions and fresh short positions were build up. We are advising a bear put in L&T wherein one can buy 1550 put which is trading around close to Rs 20 and simultaneously sell 1500 put which is trading around Rs 7. The next cost of this strategy would be around Rs 13 and the maximum profit would be around Rs 37 if the L&T goes below Rs 1,500. We are expecting L&T will be moving along with the market and it should gradually move down below Rs 1,500 towards the expiry. So we are initiating a bear put. This strategy is giving a cost of Rs 13 with maximum profit of Rs 37 which is more than 1:2 risk-reward ratio. So we are advising a bear put ratio in L&T.”

Disclosure: No personal holding in stocks discussed, but may have recommended to clients.

Buy, Hold, Sell ? Hear it first on M3
Bear Put ratio: Buy L&T 1550 Put, Sell 1500 Put, says Jain

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login