Stock name is BHEL
Stock 52 week low is 56
Stock current rate is 63.5
Election result is on 23th may
BHEL result expected on 29th may
May month expiry is on 30th may
Buy BHEL call option strike 65 @ 2.5 rs. With target of 10 rs. On or before expiry.
On 30th may BHEL equity close at 71.65 Rs. it mean our call value reach at 6.65 Rs.
We made 27000 per lot of option less cost of transaction almost 250 net amount would be 26,750 on investment of just Rs. 16,250 only in 15 days.
Option always provide opportunity for buyer to earn from various event like result, election and such uncertain outcome event. Being an option buyer it is very much difficult to select safe option where loss of time value expected is less and moreover, it provide certain safety.
Why I choose BHEL for my election pick few reason behind it. First, result of BHEL was after election outcome, while outcome of election also help BHEL to go up. Moreover, BHEL was trading very low rate and stock not run during election period. Even few block deal done in past in BHEL taken stock at very attractive level. Even premium of BHEL was not much costlier compare to other stock premium.
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