Time to book some profits and add to the (virtual) short only strategy. Three things to do:
- Exit Nifty call. Thats about 35K of return on a 14L exposure, which is 2.5%. Not too bad.
- Exit Reliance Call. 19K on an exposure of 7.8L, another 2.5%.
- Short some more HDFC. I’m somehow not yet comfortable with a P/E of 15 is worthwhile for a stock that won’t grow EPS for the next two years, at least.
Yes, a lot of cash on the table now. Will have to use this rally to build a new set of positions.
Disclosure: Have personal positions in some of the above, not necessarily short (System based).
