HDFC Bank - Options Strategy Executed in my Account

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HDFC (NS: HDFC ) BANK - OPTIONS STRATEGY EXECUTED IN MY ACCOUNT

While I was getting ready to write a post cum video on the Infosys (NS: INFY ) Strategy, I looked at my holdings and realized that HDFC Bank (NS: HDBK ) was once again at a make-or-break juncture - 1630. It has turned down from this level quite a few times. So I exited half my position at the price and banked the gains. 

This helped me regain objectivity related to the scrip. And immediately, I thought of checking if I could fund a Bull Call Spread in HDFC Bank with the proceeds that I received from the sale of equity in part. I know smart readers are now calculating how many shares I would have sold and that is OK! I like that kind of approach as it would help you develop your mind to your benefit. I also do such things so I know this is a natural reaction.

HDFC Bank is behaving like TCS (NS: TCS ) as it is trying to scale higher highs as it gets ready to face the results that are due on 15-10-21. I know it is a bit too early to execute a strategy for the results but I had the funds today so for me, today was a good day. 

I chose to create a Bull CE Spread as under:--

Long 1620 CE at 44.30

Short 1640 CE at 36.05

When I executed the strategy, the spot was at 1629.65-1630. EOD is at the same level and my strategy is at cost.

Link to the Video --
https://youtu.be/D2FhoeaEgzk

I will get back to you on 18-11-21 as that is when the scrip would react to the Q2 results.

If you want to test a strategy like this, please remember that I am sharing this only for educational and informational purposes only. I believe that by sharing to the extent I can via such posts and videos, even I am able to improve my learnings and readings of the market. 

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  • Brajesh Harkut @Brajesh Harkut
    18.10.21 date should be...
    Like 0
    • Umesh Rindani @Umesh Rindani
      You are right about it... thanks for the feedback
      Like 0
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  • AK Sharma @AK Sharma
    I also did the same😀
    Like 1
    • Umesh Rindani @Umesh Rindani
      Good to know that
      Like 1
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