Has HPCL hit near-term high?
B. Venkatesh CALLS on the Nifty index and individual stocks ended higher for the second consecutive day this week in the derivatives segment at the NSE. The following are some buy/sell strategies based on the day’s trading: • Equity options: Calls on L&T finished higher, with the June 180 calls clocking the highest volumes. There seems some upside left in the L&T stock in the near term. Consider buying the June 180 calls. As the calls are out-of-the-money (OTM), the entire premium that you pay will be for the option’s time value. Fortunately, the loss of option value due to passage of time (theta) is very low. Other positive factors are the rising volumes and open interest in the single-stock futures segment. A low put-call ratio is another factor that favours the call buyer; this ratio means that more traders are buying calls than puts – a signal that the traders expect the stock to move up. • There was good demand for calls on HPCL as well. The downside in HPCL from the current level
