I would like to know the chances of the August expiry 170 PE on ONGC becoming profitable – Shiburaj Rajagopalan
ONGC (₹173): It would have helped us to advise you better if you had informed your purchase price of the option. Nevertheless, I assume that you would like to know the chances of the 170-strike put option (170 PE) on ONGC turning in-the-money (ITM).
The stock of ONGC is in an uptrend. While it extended the upswing after rallying past ₹170 a couple of weeks ago, it could not go beyond ₹178 and declined. The price dropped as the stock was impacted by overall weakness in the market in the last two sessions.
However, the broader uptrend is intact and now, the stock has found trendline support at around ₹173. Even if the bears manage to drag the stock below this level, ₹170 is another good support for ONGC’s stock.
Therefore, as it stands, the likelihood of 170 PE becoming ITM is less likely. If you hold this option, we suggest you exit the trade. Consider puts only if the stock decisively breaks below the support at ₹170.
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