Britannia India - Classic Base & Break at play near LTH

Jul 5, 2023

The right way to make money in low volatility stocks is via calls and puts (as they are generally priced much lower than the expected move). The risk reward in this case can be far better than just plain cash buying (so 1:3 or 1:4 at times)

Britannia is fundamentally strong (good results, ROE, etc) - healthy management commentary. This is an update as the stock nears another LTH (previous around 4500 was cleared a few weeks back

• Basing around 5000 as the mean and holding the 21 EMA well
  
• Earnings expected soon - and following the leaders ITC upwards
  
• Call options are very cheap at 17% IV for a Risk to Reward of 1:3
  

Jul 6, 2023

Comment

Stay with this trade - dont get out too early. It is now going as expected

Jul 24, 2023

Trade closed: target reached