HDFC Bank - Real Options Strategy Executed


While I was getting ready to write a post cum video on the Infosys Strategy, I looked at my holdings and realized that HDFC Bank was once again at a make-or-break juncture - 1630. It has turned down from this level quite a few times. So exited half my position at the price and banked the gains.

This helped me regain objectivity related to the scrip. And immediately, I thought of checking if I could fund a Bull Call Spread in HDFC Bank with the proceeds that I received from the sale of equity in part. I know smart readers are now calculating how many shares I would have sold and that is OK! I like that kind of approach as it would help you develop your mind to your benefit. I also do such things so I know this is a natural reaction.

HDFC Bank is behaving like TCS as it is trying to scale higher highs as it gets ready to face the results that are due on 15-10-21. I know it is a bit too early to execute a strategy for the results but I had the funds today so for me, today was a good day.

I chose to create a Bull CE Spread as under:--

Long 1620 CE at 44.30

Short 1640 CE at 36. 05

When I executed the strategy, the spot was at 1629.65-1630. EOD is at the same level and my strategy is at cost.

Please have a look at the video to know more about the details. In case you are reading this on your mobile App, you may not see the link. Please use a web version and you will see the video link in it. This issue has been flagged with Investing.com already.

I will get back to you on 18-11-21 as that is when the scrip would react to the Q2 results.

If you want to test a strategy like this, please remember that I am sharing this only for educational and informational purposes only. I believe that by sharing to the extent I can via such posts and videos, even I am able to improve my learnings and readings of the market.

Please take good care of you capital as you would be in the game as long as your capital is alive - money would eventually come in once you are good at the process that you end up developing for yourself.

Till we meet again,

Please keep learning, implementing & making money!

Best wishes,