Thread by @vivekthebaria

#BPCL : Have been running strategies on BPCL since Mid March.
Stock has been quite volatile as the news around its divestment has been volatile. But since it was certain that govt would not be selling it cheap as this is one of the better managed PSUs .. (1/n)

... And there would be several transactions to make it's structure simpler for a prospective buyer to evaluate. That would mean selling off few subsidiaries which would bring in cash and that cash would be distributed to the share holders.
(2/n)

So, I bought 1800 shares of BPCL in March and pledged them to generate margins.
Using a part of those margins sold a call to make some monthly income till the plan plays out.
(3/n)

Since it bottomed out around 400 in April (IIRC), I have been selling a straddle instead of a single call to make good of the upside without having to tender my shares. From time to time, adjustment was done to have a marginsl directional view.
(4/n)

So, after almost 3 months, the strategies have generated around ₹1.23L on a capital of ₹8.2L after charges, that's about 15%.
(5/n)

Before today's upmove, I was carrying a 480-short straddle. However, as price today breached the result-day high, I have hedged my straddle with 500CE. Lets see how it pans out from here.
(6/n)

Forgot to add. It did give a dividend of Rs 5/share in March Qtr. That was another Rs 8100/- (or 1% on investment) to the bank after a 10% TDS.