Buying in delivery vs trading in fno

Colgate= insanity call usually i don't like to brag , but I'll make an exception.
Otherwise people just don't remember how truly good my calls are sometimes.
Also keep in mind when people start bragging, the move is almost over
Colgate might go sideways soon near 400-408-416-424.
The stock is not going to + infinity. On my intraday charts big gap 360-380.
Not visible on eod data, but i really don't think it traded in the 360-380 zone for long based on my intraday data. I think once this whole split euphoria is done with stock will be back to 360 levels , but that could take a while.

I would have booked half at 1x risk target in colgate near 384 and would look to book remainder near 400-408.
COLGATE, Analysis Date:5/3/2007 3:53:59 PM
Close/cmp:351.05
Swing : Up=Buy ( 6.000% sensitivity)
T1:380.103 T2:407.333
T3:451.386 1xR:383.95
SwingHigh:360.0 CMP:351.0
SwingLow:297.0 SLPivot:336.0
2xAtr14Stop:8.08446
Narrowsl:336.05
WideSl:321.20
Lower Chan:338.541 Upper Chan:382.938
ResLine:387.02
You can use a trailing stop to exit below the upper channel line, or book half now, book some at 400-407 etc.
This stock is running wild on the news of the split right now.


T1/1x risk done, T2/T3 still open, t3=insanity target, go short there if seen.
When you buy in delivery you pay full cash for a stock up front.
You can hold for eternity.
If you buy in fno then you have to pay the cost of carry. Which is usually close to plr, Basically you are asking someone else to buy the shares for you
While you pay very small margins.
What does this mean?
You are borrowing money from the market.
Suppose you have to pay say 1% premium for 1 month that is 12% cost of carry per year!!!
IF i give a call like colgate and say buy in delivery target 20% in a year
Its safe to take in delivery, while market might have temporary bouts of insanity like the recent move.
The target is 20% in one year!! If the stock does 20% in 1-2 months great you got lucky you made (20%-2%) (coc)*leverage factor(say 5) = 90%
If stock stays flat for 1 year you lose 60%!!!!!!!!! That is the risk even if the stock is flat!!
If stock goes up 20% in one year , then you would make (20%-12%)*5=40% in a year.
But the risk you are taking is enormous , 60% risk if stock stays flat!!
Imagine if stock were to be down 10% at end of one year.
(-12-10)*5 = -110%!!!! You are out of the game gone, with just a 10% drop in stock price.
The price you pay for insane returns in fno, is insane risk.
:) fno !=delivery. Understand the cost of carry before you try to make big positional plays in fno.

I know some people who went long on colgate in futures and made some crazy amount of money. Please do not count on being so lucky every time.
If the call is in delivery. Please take it in delivery.
Initial call was at 340, next breakout of 360 but it never gave an entry there, just gapped up like crazy.
Now imagine if 1 year target is 400-420 and the stock does 420 in this month itself, guess what the stock will do for the rest of the year?
P.S : funda targets have a way of getting overshot
Look at divislabs. No fundas at this stage are there??
:)
p.e of 40-50
but I suppose results will be blockbuster, a bit like praj results maybe 50-100% growth. Anything less would kill the stock.