Vodafone Idea Limited FPO Message Board (Page 72)

why u selling fut buy pe is better options

Short CE (OTM) is much better

so what I wrote is write .......... Plz guide bro

Quick which is also F&O expiry).
This assumes buying 4 lots of 12 PE April exp @ 0.2; Interest cost @ 9.75% for BHNI.

​@Sunsam Yes bhai.. 11 ya 12 strike price ki PE buy kar sakte hai.

⭐Not any buy/sell advice only for understanding

Rightly said @Sadluckforever That's what I am thinking while reading your previous message i assumed that why you are saying to buy CE and sell in future and you even try to make profit from hedge position 😄,
By just buying PE of 12/11 you can easily hedge your IPO application.
It's feels good when someone like you giving there valuable insights ,keep it up 👍 and Yes hedging is something that when situation is not in your favour you will exit your position at breakeven
But as @Aman Soni Ban will take place then hedging is risky as of now

quick update - cost of 12 PE April expiry jumped up by 0.05 to 0.25 now. Cost of hedging 10 lots is up by 40k

​@Sadluckforever Strategy is ok but with the caveat of 1,60,000 allotment (80,000 per account). How are you planning to ascertain assurance for that?
Anything +/-, the figures change.

​@MuStrFc  Have 8 accounts in total for applying IPO.
Will apply 2 BHNI accounts & Probably 6 retails accounts (can apply 4bhni/4 retail aswell) of 14 lots after seeing last day subscriptions.Even if 30000 shares alloted in all 8 accounts, I have my losses covered anything above that is profit. If 80000-100000 shares alloted in total, can mint good money.Risk reward seems good to me

Do we really need to buy the CE option? I mean if we only sell the Futures, then profit will only be limited, right?
With buying the CE option, is there any need to apply in FPO? FPO me apply karte hai in this situation, fir isme hedging kaise hui, 3 positions (Futures sold, CE bought & FPO alotment) ho gayi to 1 to open hi rahegi.
Please correct me if I am wrong.

I think buying CE is the hedge in case of non-allotment or very less allotment.

Assuming non-allotment in the above strategy max loss is 20k per lot.

Biggest assumption here is allotment ratio.

12 CE strategy can give good return on upside and safer if it closes below 11.75