Thursday, January 1, 2009

How to Buy Reliance Natural at Rs.38

Reliance Natural (ICICIDIRECT Code - RELNAT).I was fascinated by the price 52 week low of 36 about and high of about 250 about of Reliance Natural. I wish I had bought at 36. The current Market price is about Rs.53 as of 26th December 2008. I wish I could buy at 36 around....Do you really want to buy at about these prices say around 38 Rs.? Is that sounding crazy when current market is about 53 how I can get for Rs.38?Yes its possible - or I should say may be possible. If you are really sure that you will buy around 38 then only experiment about this step. Means when it goes to zero also you should be willing to pay Rs.38 per share. Its crazy?The strategy is Naked Put Selling. Its risk involved. But you are really interested and want to give a try = Here is the way.The current RELNAT Put of 40 strike price is about 1.5-2. If market sinks try selling this put above Rs 2 for January 2009 Put 40 strike. If by January 2009 Last thursday RELNAT is below 40 you are sure to get what you wished for.Good Luck.JK.

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