Comments
The outlook for Jet Airways ( ₹747) appears positive. It faces a hurdle at ₹806 and support at ₹646. A close above ₹921 will change the long-term outlook to positive. In that case, Jet Airways can rally above ₹1,380.
F&O pointers: Jet Airways accumulated 37.57 lakh shares in open interest. Trading in option indicates the stock could face resistance at ₹800 and support at ₹700.
Strategy: Traders could consider a bull-call spread on Jet Airways. This can be initiated by buying ₹760-call (premium of ₹29.35) and simultaneously selling the ₹780-call, which closed with a premium of ₹21.5.
This strategy will cost an initial outflow of ₹7,065 (or ₹7.85 a contract) for traders and that could be the maximum loss one can incur.
For that to happen, shares of Jet Airways will have to close at or below ₹760 at the time of expiry.
A maximum profit of ₹10,935 is possibleTraders could hold the position till expiry or if the underlying stock moves above ₹780. In the event of the stock failing to sustain the current momentum, traders can exit the position with a loss of ₹4,500.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.