Amit Trivedi, Director of Fin Stream Financial Advisors advised buying L&T 1,550 Call at around Rs 40 and sell 1,600 Call at Rs 22 and 1,650 Call at Rs 10.
Trivedi told CNBC-TV18, “After results BHEL has corrected and it is down to around Rs 215 levels. We think for both L&T and BHEL, the upsides are capped maximum to 10 percent of where they are currently in this particular series.”
“For BHEL, we are recommending that the investors can go and sell 260 strike Calls at around Rs 0.45, which it is trading right now. So you make around Rs 450 and you benefit if BHEL remains any value less than Rs 260. And currently at Rs 250 you have 20 percent headway to that particular price point,” Trivedi added.
Trivedi further said, “Similarly, for L&T, we have a slightly different strategy. We think L&T has been moving in Rs 1,500-1,520 to around Rs 1,650 levels and is consolidating at these levels. So we think investors can execute a ladder strategy in L&T, which is buy 1,550 Call at around Rs 40 and sell 1,600 Call at Rs 22 and 1,650 Call at Rs 10. So, there is an initial investment of approximately Rs 8 in this strategy and investors will benefit if L&T remains any valuable between Rs 1,558 and Rs 1,690 levels.”
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