Hindalco, JSPL plunged by 7 and 17% respectively on news that the mines they won are under scrutiny and that they might be re-auctioned. They recovered on the next trading sessions though.
JSPL has told CNBC-TV18 that they are hopeful they get to retain the mines. The coal ministry has said that they would decide upon the fate of the mines under review by this week. The result would definitely have an impact on the scrip, as the bids for those mines are the cheapest in the ongoing auction. I hope JSPL will retain their mine, but it may go the other way around too.
I would take a strangle on the scrip, with an in-the-money call, and out-of-the money put(just in case).
JSPL has told CNBC-TV18 that they are hopeful they get to retain the mines. The coal ministry has said that they would decide upon the fate of the mines under review by this week. The result would definitely have an impact on the scrip, as the bids for those mines are the cheapest in the ongoing auction. I hope JSPL will retain their mine, but it may go the other way around too.
I would take a strangle on the scrip, with an in-the-money call, and out-of-the money put(just in case).