Dhaba Portfolio: Managing Risk #8

Tuesday, December 16, 2008

(click to enlarge


Our portfolio position on Dec 8, 2008 was depicted in the chart above.

In the past week, the market extended gains.  However,   underlying earnings are weak, globally economies are under stress, capital inflows are weak.

On Dec 16 '08 I have increased the risk position by selling Jan 3000 Nifty calls for Rs 215.

The new risk and pay-off profile as at Dec 16 '08 is shown on the chart below:
(click to enlarge)


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