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Futures & Options

Update: Ranbaxy up 3%

So since my last post, Ranbaxy’s September future has scaled up to 414, a 3% increase. I’m still holding; it seems to have some steam left. Let’s see how the next few days go. The spot price is still 490+, so there is a huge differential.

Another thing: The straddle I mentioned, and then updated, is staying on course, but lost about 10% in premiums today. It’s still net up about 20%, and I’m going to consider closing it tomorrow, should there be no major move.

The Short Only Strategy of course is doing badly with this dramatic rally, down about 90K from the highs – yet, it’s not anything to worry about. Maybe time to double up – but I wouldn’t do that on the way up. It’s better to do it on the way down.

  • Gurinder says:

    >Well, Looking at Global indices your SOS double day is coming tomorrow 😉

  • Siddharth says:

    >Deepak,
    Just tried collating the numbers to see whats going on in Ranbaxy.
    marginal change in the future price from 414 to 415.75.(nseindia.com)
    But this future is total worth Rs20,741 lakhs due expiry 25th Sept.

    Call options almost Rs18,899 lakhs. Note I have added only CA type going into crores only.range from 400 to 600.

    One thing is that the futures require to be settled in cash whether P or L. Correct me if wrong. So this turnover is quite huge in regards to futures only that to at 400.

    There wasnt any negative annoucement so as to slide the spot from 48#ish to 45#ish.

    If someone, again I am speculating, is at high stakes with futures, then something odd is going on, in my childish opinion.Aggressive dump? I think so because even when the nify and whole socks were getting beating Ranbaxy had held up steady on the opening price.

    Gamez on, now lets see whats next.
    cheers