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Can I buy HDFC Bank call options now? – Tarun Dutta
HDFC Bank (₹1,708.5): The stock broke out of resistance at ₹1,670 this week. But it is now trading near the next barrier at ₹1,710. Therefore, even though the trend is bullish, current market price may not be the apt price region to buy call options.
You can consider going long on call either after the breakout of ₹1,710 or if the price dips to ₹1,670. Until then, we suggest staying out.
Here’s our recommendation. Buy HDFC Bank 1700-call of October series (₹50.10) when its premium breaks out of ₹60. Place stop-loss at ₹40. When the option price touches ₹85, revise the stop-loss to ₹65. Book profits at ₹100.
Rather than breaking out of ₹60, if the price of 1700-call falls to ₹25, go long. Place stop-loss at ₹10. When the premium touches ₹60, modify the stop-loss to ₹40. Further stop-loss adjustment can be made as mentioned above. Exit at ₹100.
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