Thursday, January 1, 2009

HCLTEC at 112 an opportunity for covered call

HCL Technology has been doing good in terms of price. Recently its 52 week low was about 102 rs. Currently trading around 110-113. There is a good covered call opportunity available for this stock. The covered call jan lot is 650 stocks. if you can invest about 110*650 = about 72,000/- rs and sell the covered call of 115 at about 5 Rs. one lot = 650*5 = 3250 Rs. If HCLTEC closes above 120 by Jan month end you get to gain about 10 Rs. per share thats about 120% p.a. return.(Assuming you bought at 110 Rs.) If the stock lies below 115 by Jan Month end your stock cost of acquisition would be about Rs.105.

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