Underperformance should continue in Bank of Baroda: Trivedi

Amit Trivedi, Director of Fin Stream Financial Advisors feels underperformance in Bank of Baroda should continue. He advised individuals to go for ratio trade in BoB.
 
Trivedi told CNBC-TV18, “After yesterday’s result, Bank of Baroda (BoB) has corrected some 6-7 percent. We think this underperformance should continue in markets. So, we think individuals can go for a ratio trade in BoB because the stock did not go beyond Rs 880 levels before results also.”
 
“We think investors can buy 880 Calls right now at around Rs 5.50 and sell two 900 Calls at Rs 3.50. So, there is a net cash inflow of Rs 1.50 and the breakeven point is investors will make at least Rs 1.50 if BoB remains at any value less than Rs 920 levels, which is Rs 120 from current levels. So, there is a lot of advantage in the strategy,” Trivedi added.