Tata Steel Ltd FPO Message Board (Page 9)

TATA STEEL FPO
TARGET OF RS 660 AGHIVED I SOLD ALL MY OLD HOILDINGS OF TATA STEEL AT RS 661
LOOK AT OLD QUOTES TO APPLY IN TATA SEEL AND SELL OLD SHARES OF TATA STEEL AT RS 650 AND RS 660 RANGE
DATR 25 JAN 2011 TIME 12.43 PM
GOOD LUCK

246. prasad babu

Again you are wrong! Total loss 650 + brokerage for 3 lots in case it settles above 640 in Feb settlement.

TATA STEEL @ 655, MOVING FORWARD WITH HUGE VOLUME

Dear Sreedhar,

Pls let us know when to buy JP associate, as it is now moving northwards.
Also share yr view on OMKAR ipo, as most of the chittorgarha boarders are waiting for your decision.

Mr.Ravi,
you are correct, but if we loss all premium, finally our loss will be 27.6*500+17*500+10*500=27300 if price settles above 640rs.

TATA STEEL IPO
THOSE WHO HAVE SHORTED TATA STEEL AT RS 630 TO RS 635 WILL HAVE TO COVER IT AT LOSS ON JAN 2011 FUTURES
TODAYS PRICE IS RS 649
AS INFORMED EARLIER I WILL APPLY IN TATA STEEL WHICH I HAVE ALREADY DONE AND SELL MY OLD HOLDINGS AT RS 660 OR SO
SOME OF MY OLD HOLDINGS I HAVE SOLD AT RS 650
AND WATING FOR RS 655 TO 660 PRICE TO SELL OTHER PART OF HOLDINGS
DONOT EXPECT FOR PRICE TO COME TO RS 630 OR BELOW AT TIME OF ALLOTMENT OF FPO SHARES

GOOD LUCK

1 QIBs (0 times)
2 NII (1.68 times)
3 RIIs (2.03 times)
-------as per nse website-----------
whats going there?why RII & NII are showing such a huge response for this.is it really good one to invest??or any operator play to make real RIIs to immerse?share ur thoughts.

Tata Steel crosses 650. Congratulations to all retailers who have applied for this stock. It has a target of 817. Keep buying whenever you can.

Congrats to all dear friends who have applied for Tatasteel.You can now hedge by playing in futures.

I cautioned not to play with FnO. Some of the QIB interest on the stock is taking it to new high. It is not same as SCI or PSB.

232. KK Natarajan

As you have already taken short-position, if you sell 640 Feb Call, you will be over-hedged by 500 shares!

232. KK Natarajan

Retail is oversubscribed 1.6 times, but at the same time employee quota is only subscribed 0.06 times. Thus I am anticipating 665 shares to be allotted against three full applications.

I expect Tata Steel would drfit down to 620-615 levels at the time of listing.

Options (European) is already came to effect from 03/01/2011. You can cover position whenever you want.

In Options (American) system, Options sellers were in disadvantage position as they had no control if their scripts closes above strike price at closing. At that scenario, they were under the mercy of Option buyers. However, now you can play as if you play Index like (Nifty) for scripts also.

233. prasad babu

Your understanding is wrong. If it moves above 640, then all Put (640, 620, 600) will become 0. Maximum loss is premium paid, i.e. 650 + brokerage.

Congratultions to all who have invested in Tata Steel. Stock already up today. Likely to get 100 shares for 1 lac appliction annd 200 shares in 2 lac application. So you can get upto Rs 3000 or Rs 6000. Much better than P&S Bank or SCI in which we lost money.CHEERS!!!

Out of 1.6 Retail Subscription how much is at 610 or at Cut Off ?
I want to understand the approx no of shares that will get allocated in 1 FULL application so that I can decide on my option/futures strategy
Thanks
Milind

What is HNI cost in TATA STEEL??

We may get 200 shares allotted. If the present market condition stays
we will get 4000 bucks. If the market tanks and tata steel goes below
600 we will be compulsory long term holders.

Mr. Ravi,
regarding your comment on TATA STEEL , "Unexpetedly, if Tata Steel remains in 640 or above, traders loose around Rs.650 + brokerage in F&O. However, they make Rs.30 - Rs.50 profit / share in FPO allotment." seems to be not correct. YOU CALCULATED the loss 14800-9000-5150=650 but actual is 9000+5150=14150 .the rate of appreciation of 640 buy at 29.60 at end of feb F&O expiry , if it is may be 35rs*500=17500 the diff 17500-14800 ,than the loss will comedown 14150-2700=11450


Tata Steel 633



Buy Feb 640 Put at 29.60

Sell Feb 620 Put at 18.00 &
Sell Feb 600 Put at 10.30

Cover 620 Put when it falls to 620 or below & hold remaining position till Feburay expiry for a fall to 600. When it falls to 600 or below, square-off all positions.

Margin requirement: Rs.90,000 to 97,000.

I expect Tata Steel fall to 620 at the time of listing. FPO investors would get Rs.10/share. F&O strategy could fetch Rs.10,000.

Unexpetedly, if Tata Steel remains in 640 or above, traders loose around Rs.650 + brokerage in F&O. However, they make Rs.30 - Rs.50 profit / share in FPO allotment.

204, Ravi, Bangalore,

Thank you very much for suggesting me to sell Tata steel 640 Feb call at 15 if I get full allotment.

I need a few clarifications in this regard.

Now as things stand I may get anywhere from 630 to 640 shares for my 3 applications.

I have already shorted Feb futures (500 lot size) at 628.

I remember to have read that from Feb onwards the options segment will be shifted from the present US model to the European model. It seems SEBI is doing it to reduce volatality and the wrong use of options.

I also understand that under the European model, we can not cover the options as and when we wish as we do now but it will be covered only on the expiry day.

I don't know whether the European model has come into force for the Feb series or not.

In this scenario, what will happen if I sell 640 Feb call option on Monday?

Please clarify.

I think, Tata steel would remain above the issues price in secondary market, because there was lots of interest shown by the QIB n HNI's but i am afraid about the market only because i heard from somewhere that FII's had shorted heavily in futures....

Will market fall further..?