Traders pile bullish bets on SBI, Rs 230 level eyed
The Rs 215 straddle -combined call and put option -- value was Rs 18 a share (3,000 shares make one lot). It means the stock could move 8% up or down from Rs 215 level.
By Ram Sahgal, ET Bureau |
Agencies
Mumbai: State Bank of India could test the Rs 230 mark this month if it manages to break above the Rs 220 level, active options data show. The range is Rs 197-233, with a bias to the upside. The company beat all the estimates on its Q2 performance and analysts expect a re-rating of the stock.
The Rs 215 straddle -combined call and put option -- value was Rs 18 a share (3,000 shares make one lot). It means the stock could move 8% up or down from Rs 215 level.
On Thursday, the underlying stock traded up 5.6% at Rs 218.55. The Rs 220 level is a strong resistance for the stock, data shows.
The stock can be bought on dips of Rs 210-215.
It has underperformed the Bank Nifty, which has risen 29% from its September 24 low to 26,282 intraday Thursday. SBI has risen 24.5% after today's rise.
The Rs 215 straddle -combined call and put option -- value was Rs 18 a share (3,000 shares make one lot). It means the stock could move 8% up or down from Rs 215 level.
On Thursday, the underlying stock traded up 5.6% at Rs 218.55. The Rs 220 level is a strong resistance for the stock, data shows.
The stock can be bought on dips of Rs 210-215.
It has underperformed the Bank Nifty, which has risen 29% from its September 24 low to 26,282 intraday Thursday. SBI has risen 24.5% after today's rise.
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