Cash Secured Put in Coforge for premium of Rs. 60000

[Michael Gonsalves]

An expert on twitter advised that Coforge is on the verge of a break out and can rise about 4%.

I like the stock and so I sold a Cash Secured Put for 600 shares (3 lots) at the strike price of Rs. 5000 for Rs. 102.12 each.

My trade will make money and I can pocket the entire premium if the stock stays above Rs. 5000 by 30th September, which is 13 trading sessions away.

I have kept aside Rs. 30 lakh, which is the capital required to take delivery of the 600 shares, should the eventuality arise.



https://twitter.com/RajarshitaS/status/1437671652129529856

[Michael Gonsalves]

Coforge closed today at 5241 with the result that the 5000PE expired worthless. This resulted in a gain the entire premium of Rs. 61000.