Rakesh Writes:
Can you please throw some light on Ranbaxy futures. Aug futures are at par with spot at around 520 but Sept futures are at a steep discount at 405. Is it a good call to sell Ranbaxy Aug futures and hedge by buying Sept futures at 405.
1. Thanks Rakesh for being vigilant: Rakesh an avid reader has asked about Ranbaxy strategy and it appears to be a win win situation. One can buy Ranbaxy Sept future at 405 and can hedge the same by buying 400 Put for Sept which is available around 35. Thus loss is limited whereas upside is huge.
2. This is the reason I say that an informed reader is an asset to the organisation and I whole heartedly thank Rakesh for bringing this fact to all of us notice as a safe strategy would have had been missed.
3. I further exhort readers to be vigilant like Rakesh in real life situations also so that India as a nation do not fall prey to unsocial elements and I take the opportunity to call on all the Jammu & Kashmir people to exercise restraint and should not let our enemy/rogue nations take advantage of the situation as such scenario can only help those nations in achieving their ulterior motives. Let us be united and make India as a Force to reckon with and remember Firdauss has said
“GAR FIRDAUS BAR RUE ZAMIN AST, HAMI ASTO, HAMI ASTO, HAMI ASTO”
“IF THERE IS HEAVEN ON EARTH, IT’S HERE, IT’S HERE, IT’S HERE”
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