This is a contra trade
if oil is on a rise, it will be cost disadvantage for airline industry...
- at cmp and on rise towards 852 if gets resisted, it will provide a contra trade opportunity where one may look for a fall up to 800-796 levels
Strategy for Jet Airways
One may consider selling Call option January expiry
Strike Price: 860
Lot size 1200
Margin requirement approximately Rs 180000/- per lot
Maximum profit potential of Rs 31200/- (approximately 17% ) per lot if Jet Airways closes any where below 860 on 25-January 2018
Loss protection for rise in spot price up to 886
That's a protection of (886-841)*1200 = Rs 54000/-
We have had 2 good trades with Jet Airways earlier...will we be third time lucky...???
Take care & safe trading...!!!
Target of 796 achieved
Current Profitability in Jet Airways Strategy
Jet Airways 860 Call Option
Made a low of 5.65
Profiting more than Rs 24000/- per lot
Consider booking profits as per risk appetite
Tc & Happy trading...!!!