VK Sharma's view on JP Associates

VK Sharma, Head Private Broking & Wealth Management, HDFC Securities shares his view on Jaiprakash Associates.

Sharma told CNBC-TV18, "Jaiprakash Associates is a high beta stock when it comes to moving down. It moves pretty fast. Options are liquid here although it fell 8% where there could be more in store. So my suggestion is those who hold, buying the 65 put at Rs 3.5, keep a stop loss of Rs 2 and hope to gain almost Rs 3.5 on that."
He further added, "The advantage of buying puts in stocks that you hold or even a trading position if you buy a put and if the direction changes, you could then remove your stop loss from the put and go out and buy the futures. The same positions can be used in a very effective way, so that you are protected in case your long call goes wrong. So wherever the puts are being bought, if you see direction change somewhere during the course of the day, I think switching over and buying futures with the puts in place might be a good change of strategy in midcourse."