The strategy is based on repeated historic trend of Infosys.
Last 3 quarters, Infosys announced results, below were the stock reactions.
In the last 3 quarters, each time, Infosys fell by 10% after results and future earnings guidance.Jan 2012 Results - Infosys fell from 2800 to 2600
April 2012 Results - Infosys fell from 2750 to 2400
July 2012 Results - Infosys fell from 2500 to 2200
I think the trend will continue and with Rupee going on the rise, Infosys will most likely fall.
Infosys Q2 results will be announced coming Friday (October 12th). I can bet that Infosys will go down.
I bought 2 lots of Infosys (INFY) 2400 PE - 25 Oct 2012 Expiry at 55 Rs premium today.
I am noting all these down just to maintain my own discipline. Risk is yours when you decide to enter positions.Hold Period: Till October 15th (Max till Oct 20th).
Target: Whatever price we get between Oct 15th to Oct 20th
Max Risk: Incase Infosys does not go down and stays around 2500, Premium can go down around 30 ... 50% loss is the downside risk
Profit Potential:If Infosys goes down by 10% again this time, it will be around 2250 by Oct 15th and premium should go as high as 200. 300% gains possible.
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