07
Jul
11

Bought some panic today..

One more DMK wicket is down from cabinet after Mr. Dayanidhi Maran resigned as Textile minister today (http://www.livemint.com/2011/07/07135546/Dayanidhi-Maran-resigns-as-Cab.html?h=A1). It was seen coming after CBI implicated Mr. Maran in chargesheet yesterday. Sun TV shares fell sharply as soon as the news broke out. Puts from 200-240 were actively trading. Implied Volatility (IV’s) as well as option premium increased sharply. I thought panic reaction was an opportunity to write some OTM puts, since premiums were quite compelling. I think lot of negatives and uncertainty is factored in Sun TV share price. Lot of people might compare Sun TV with GTL or RCom, but they are ignoring one big fact that Sun TV is doing extremely good on business front. It’s high risk, high return trade.

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