Rcom short

[anandrshukla]

Reliance communications came with good numbers today.....
But i am not very bullish and expecting heavy 2G auction prices
Hence trying to go short for about a month
Sell June 70 call at 3.25
buy June 75 call at 1.80
max profit= 5800

Please comment what will be the max loss? and in which case it would be?
how correct is my hedging? should I consider buying a nifty june call of 5200 available at 1600 bucks?
any idea where I can get beta of rcom online for free?

is there a more safe way of going short on rcom?

 

[santoshpasi]

Reliance communications came with good numbers today.....
But i am not very bullish and expecting heavy 2G auction prices
Hence trying to go short for about a month
Sell June 70 call at 3.25
buy June 75 call at 1.80
max profit= 5800

Please comment what will be the max loss? and in which case it would be?
how correct is my hedging? should I consider buying a nifty june call of 5200 available at 1600 bucks?
any idea where I can get beta of rcom online for free?

is there a more safe way of going short on rcom?

Assuming you took 1 lot each, maximum profit would be Rs 5800 and max risk may be Rs 14200 as per current numbers.

 

[anandrshukla]

Dear sir,

Thank your for your valuable insight,but I am unable to figure out how you decided that figure?

today this trade is at a profit of 600 as of now

but i am new to the arena, hence want to learn to understand risks involved in a better manner

 

[Dexietamo]

I appreciated

Yes, you are right!