HDFC AMC 3,000 CE zooms approximately 40 per cent as stock trades above Rs 3,000 per share

The call option (CE) with a strike price of 3,000 is seeing a good amount of traction since a couple of trading sessions as the stock price attempts to settle above Rs 3,000 per share.

HDFC AMC was a star performer in 2019; however, it hasn’t been doing well since the recent market rally that started one year back, relatively speaking.

The call option (CE) with a strike price of 3,000 is seeing a good amount of traction since a couple of trading sessions as the stock price attempts to settle above Rs 3,000 per share. In today’s trading session, the CE with a strike price of 3,000 is up by nearly 40 per cent as HDFC AMC hits an intraday high of Rs 3,023 per share. Traders resort to buying CE when they are bullish on the underlying. Clearly, the traders who are buying the 3,000-strike price CE believe that the stock is headed for some healthy gains in June series for HDFC AMC.

There is a positive trend that can be seen in financial stocks including AMC stocks such as Nippon Life Asset Management, which has outperformed the markets in the recent trading sessions, aided by some FII buying into the counter. 

HDFC AMC is up by 0.5 per cent on a YTD basis while the stock is up by 13 per cent in one year; thus, underperforming the markets. By crossing an important level of 3,000, the stock could do well to be one of the top gainers in June series, which the options traders are banking on for sure.