TATA MOTOR - CE 400 27 OCT - Potential Opportunity

Currently TATAMOTORS is trading at 412. The following opportunity exist on downside for potential long call options for strike price of 400. The current SD of tata motor is about 3.5 to 4.5%.


Predicted value of tatamotor on 10th OCT - 395-400 range.
Predicted value of tatamotor on 20th OCT 410-415 range. (about 1SD from the 395 range, it may go above 415 if market holds and with festival season sells).

Current LTP of CE 400 options: Approx 22 Rs.
Expected trading price on 10th if predicted price comes - 8.90 to 11Rs.

Suggested buy range: 9 to 11.4, hold for 2 weeks.
Predicted premium on 20th OCT for 410-415: 14.65 to 18.30

Estimated premium on 20th OCT for various price:

380 1.95
385 3.00
390 4.45
395 6.35
400 8.65
405 11.45
410 14.65
415 18.30
420 22.25

Note:
Above idea is for education purpose only and not to be considered as trading tip.
The option prices are estimated using sensibull price calculator for todays IV.