Query on Financial Options: Should one consider purchasing Dr. Reddy's put option and Hindustan Unilever call option?
In the world of stock markets, two significant players have been making headlines - Dr. Reddy's Laboratories and Hindustan Unilever. Here's a breakdown of the current situation for each.
Dr. Reddy's Laboratories
The short-term outlook for Dr. Reddy's Laboratories indicates a modest recovery after recent declines, with the current stock price hovering around Rs 1,220–1,225 as of early August 2025. However, the stock remains below key moving averages, reflecting ongoing short-term resistance and challenges.
For those holding the Dr. Reddy's Laboratories 1200-put option, it is suggested to consider exiting two lots at Rs 32 and the remaining one lot at Rs 40. A stop-loss of Rs 18 is recommended to mitigate potential losses. Given the current price action near Rs 1,220–1,225 and recent weak performance, the 1200 strike put is likely in or near the money. If the stock continues its recent downward trend or fails to sustain gains above Rs 1,225, the put option could increase in value if the price falls towards the 1200 strike or below.
Support for the stock appears near its 52-week low of roughly Rs 1,020–1,025, which is significantly lower than the current levels but represents a deep downside target. Traders should monitor whether the stock breaches the Rs 1,200 level, as that is the key threshold for the option’s intrinsic value.
Hindustan Unilever
Hindustan Unilever's stock has witnessed a considerable rally over the last two sessions, but it is expected to decline in the short term. The current support level for Hindustan Unilever's stock is Rs 2,530. Despite Friday's decline, your trade for Hindustan Unilever is still in profits.
If the premium for the Dr. Reddy's Laboratories 1200-put option goes up to Rs 32, it is suggested to exit two lots as mentioned and revise the stop-loss for the remaining position to Rs 25. A drop to Rs 1,175 could push the premium of the 1200-put from the current Rs 26 to approximately Rs 40 for Dr. Reddy's Laboratories.
Support levels below Rs 2,530 can be found at Rs 2,500 and Rs 2,460. A fall to these levels could lower the option premium for Hindustan Unilever's stock. We suggest exiting your trade for Hindustan Unilever due to the potential for another leg of fall from the current level.
It's essential to keep a close eye on market movements and make informed decisions based on the latest data and analysis. For queries regarding derivatives, contact [email protected].
- In the world of finance and investing, the stock market has seen significant movement from two companies, Dr. Reddy's Laboratories and Hindustan Unilever, with each offering unique opportunities.
- Dr. Reddy's Laboratories is currently experiencing a modest recovery, with its stock price around Rs 1,220–1,225, but it remains below key moving averages, indicating ongoing resistance.
- For traders holding the Dr. Reddy's Laboratories 1200-put option, it is advised to consider exiting two lots at Rs 32, and the remaining one lot at Rs 40, with a stop-loss of Rs 18 to mitigate potential losses.
- In the case of Hindustan Unilever, the stock has rallied recently but is projected to decline in the short term, with the current support level at Rs 2,530.
- Subscribers to financial analyisis may find it beneficial to monitor market movements, make informed decisions, and connect with [email protected] for queries related to derivatives.
