If Kotak Bank consolidates; I will head for Kotak Bank August 990 at 23.10 and Kotak Bank August 990 PE at 11.55 for which will constitute a straddle then.
Initial Credit = 23.10+11.55 = 34.65
Upside Breakeven = 996.20 + 34.65 = 1030.85
Downside Breakeven = 996.20 - 34.65 = 961.55
Fundamentally it has contributed huge to the NIFTY and the asset quality has stregthned huge and loan book increased in this quarter.
Our entry for the Kotak Bank was 995 and stop loss at 982. Net Loss = 13 points
Our entry for Kotak Bank August 990 PE was at 11.55. Current Value is 27. Net Loss = 15.45 points
Hedge Trade was Kotak Bank August 990 CE which was at 23.10. Current Value is 1.10. Net profit = 22 points
Profit in the net setup of Kotak Bank Buy and 990 CE sell is 22-13 = 9 points
Profit in the net setup of Kotak Bank August 990 PE and Kotak Bank August 990 CE sell is = 22-15.45 = 6.55 points
990 CE will be left open towards expiry; so there is more leg room for the profit for 1.1 points.