News:

SMF - Just Installed!

Main Menu

Recent posts

#1
Macquarie on Bajaj Fin
U-P, TP Rs 5275
Weakening cross-sell franchise & co's weaker digital footprint will affect loan growth going ahead
Expect RoA to moderate from 4.6% in FY23E to 4.2% over FY23-25E, while consensus builds no moderation
Risk-reward unfavourable @6.4x FY24E BV

https://twitter.com/nimeshscnbc/status/1597778991313997825
#2
Bajaj Finance has lost a bit of ground. The 6800 Put came into the money. However, instead of delivering the stock, I rolled it down to the 6600PE. Hopefully the stock will stay above that till the Nov expiry.

#3
I didn't want to give delivery as the stock is worth keeping and there would be a liability for capital gains tax in case I delivered it. So, I covered the position and absorbed the loss. I have sold Calls and Puts and hope to recover the loss in the next few months.

#4
I have sold 6000 2540CE Calls in HDFC Ltd for Rs 16.55 each. Today, the stock surged nearly 6% to Rs 2650. This was because the DOW had surged 900 points (3%) yesterday because inflation is falling. Also, news came in that under the amended MSCI M&A RULES, HDFC, HDFC BANK Merged entity can see double the current MSCI weight. MSCI Weight post merger can go from 5.78% to 13%. Adjustment factor of 1x applicable instead of 0.5x.

https://twitter.com/YatinMota/status/1590940849302802434

The result is that I am bleeding profusely from the short calls.

I have the stock in my portfolio and will give delivery in case adjustment is not feasible.

#5
Bajaj Finance has yielded a good gain of about Rs. 3.50 Lakh due to the stock staying range-bound. I will repeat the same process for November. This will hopefully enable me to recover some of the losses suffered due to the premature sale.

#6
Though the stock is at 519, the 540PE is yielding a gain of Rs. 10800. In addition, the 550CE is also yielding a nice gain. So, I exited the positions for a gain of Rs 45500. I have placed an order for sale of two lots (1950) of the 500PE of the November expiry for Rs 14.

#7
Jefferies has recommended a buy of Can Fin Homes for a target price of Rs 635

"Jefferies On Can Fin
Buy, TP cut to Rs 635
Operating Results Beat; Clarity Around Mgmt Transition Key To Re-Rating
Strong Demand In Housing Should Drive 20% Loan CAGR Over FY22-25
NIM Ahead Of Est But Could Dip Over FY22-25
Raise FY23-25 EPS Est. By 9-10%"

https://twitter.com/nimeshscnbc/status/1582562786366074880
#8
Can Fin jumped nearly 4% putting my overall position in a tidy profit. If the Calls get threatened, I will exit at cost.

#9
The strategy of selling Calls helped to neutralize the loss on the Puts. If the stock closes below Rs 540 by expiry, I will take delivery and selling Rs 540 Calls of November.

#10
Atul Auto is up 7% today over this news of Vijay Kedia's investment.