Futures

CASH SHARES or WELL-COVERED FUTURES ... make your choice !

I list below some of my choicest futures, and how do they fare with an equivalent number of cash shares :

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Larsen & Toubro
(lot size 50, margin deposit 41K, as on 1.2.2008)
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1. Initial investment per lot : 41K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE) : 50K
3. Cost of adding another future at bottom rates : 34K
4. Total investment YET on acquiring 100 shares : 125K
5. Total investment required for buying 100 cash shares : 370K
6. How about just BUYING a FUTURE upon a minor/major correction, and maintaining it for LIFE ?? I'm sure you won't EVER really regret it.
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ABAN Offshore
(lot size 50, margin deposit 57K), as on 1.2.2008)
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1. Initial investment per lot : 57K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE) : 50K
3. Cost of adding another future at bottom rates : 48K
4. Total investment YET on acquiring 100 shares : 155K
5. Total investment required for buying 100 cash shares : 357K
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Sesa Goa
(lot size 75, margin deposit 98K), as on 1.2.2008)
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1. Initial investment per lot : 98K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 75K
3. Cost of adding another future at bottom rates : 87K
4. Total investment YET on acquiring 100 shares : 260K
5. Total investment required for buying 100 cash shares : 455K
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MICO
(lot size 50, margin deposit 50K), as on 1.2.2008)
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1. Initial investment per lot : 50K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE) : 50K
3. Cost of adding another future at bottom rates : 45K
4. Total investment YET on acquiring 100 shares : 145K
5. Total investment required for buying 100 cash shares : 376K
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Reliance Industries
(lot size 75, margin deposit 50K), as on 1.2.2008)
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1. Initial investment per lot : 50K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE) : 75K
3. Cost of adding another future at bottom rates : 45K
4. Total investment YET on acquiring 150 shares : 170K
5. Total investment required for buying 150 cash shares : 383K
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BHEL
(lot size 75, margin deposit 34K), as on 1.2.2008)
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1. Initial investment per lot : 34K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 75K
3. Cost of adding another future at bottom rates : 26K
4. Total investment YET on acquiring 150 shares : 135K
5. Total investment required for buying 150 cash shares : 310K
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HDFC
(lot size 75, margin deposit 42K), as on 1.2.2008)
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1. Initial investment per lot : 42K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 75K
3. Cost of adding another future at bottom rates : 38K
4. Total investment YET on acquiring 150 shares : 155K
5. Total investment required for buying 150 cash shares : 450K
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EDUCOMP
(lot size 75, margin deposit 100K), as on 1.2.2008)
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1. Initial investment per lot : 100K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 75K
3. Cost of adding another future at bottom rates : 95K
4. Total investment YET on acquiring 150 shares : 270K
5. Total investment required for buying 150 cash shares : 563K
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GRASIM
(lot size 88, margin deposit 58K), as on 1.2.2008)
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1. Initial investment per lot : 58K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 88K
3. Cost of adding another future at bottom rates : 52K
4. Total investment YET on acquiring 176 shares : 198K
5. Total investment required for buying 176 cash shares : 532K
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Laxmi Machines
(lot size 100, margin deposit 69K), as on 1.2.2008)
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1. Initial investment per lot : 69K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 100K
3. Cost of adding another future at bottom rates : 61K
4. Total investment YET on acquiring 300 shares : 230K
5. Total investment required for buying 200 cash shares : 410K
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State Bank of India
(lot size 132, margin deposit 57K), as on 1.2.2008)
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1. Initial investment per lot : 57K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 132K
3. Cost of adding another future at bottom rates : 48K
4. Total investment YET on acquiring 264 shares : 237K
5. Total investment required for buying 264 cash shares : 577K
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BEML
(lot size 125, margin deposit 34K), as on 1.2.2008)
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1. Initial investment per lot : 34K
2. Downside liability if it tanks by 1000 rupees (quitey IMPROBABLE): 125K
3. Cost of adding another future at bottom rates : 31K
4. Total investment YET on acquiring 250 shares : 190K
5. Total investment required for buying 250 cash shares : 332K
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MCDOWELL-N
(lot size 125, margin deposit 67K), as on 1.2.2008)
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1. Initial investment per lot : 67K
2. Downside liability if it tanks by 1000 rupees (quite IMPROBABLE): 125K
3. Cost of adding another future at bottom rates : 58K
4. Total investment YET on acquiring 250 shares : 250K
5. Total investment required for buying 250 cash shares : 431K
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