SoS trades: Exit Short Calls, Short HDFC Some More

4 comments Written on March 15th, 2009 by
Categories: ShortOnly
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).

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About the Author: Deepak Shenoy
http://www.capitalmind.in
The man behind Capital Mind. Deepak has co-founded MarketVision, a financial knowledge startup. He has traded the Indian Markets for nearly a decade. Deepak lives in Gurgaon and fears using long words.

4 comments “SoS trades: Exit Short Calls, Short HDFC Some More”

>DLF jumped by 12%. In the scenario HDFC is good candidate for short, then DLF should as well be in the same line?

cheers

>Not quite, I think. DLF is just going through a temporary recovery, but it’s gone down a lot by fundamental standards. HDFC is a better bet that way.

>Thanks Deepak

I hope you are receiving my emails from office id?

cheers

>Hi Deepak,

What is your opinion on Nifty & ICICI Bank over a month horizon?

I am guessing that nifty will run out of steam soon.


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