ADANIENT - Income generation via call spreads

Apr 4, 2023

• IV here continues to be very high - highest in the market (60 th percentile)
  
• However the momentum on weekly and monthly basis is lower - not higher
  
• Too much noise and news on Adani Group to make any sense - ignore it and play the charts only
  
• Daily range is reducing over time (ignoring the expiry day move) - that means this stock is winding up for a large move either way
  
• My guess is that it will test 1500 soon (BTW - over 1 year period Adanient is still positive!!)
  
• The trade - sell 1700 - 1900 call spreads (Its a 1-1 trade).
  
  WARNING - Don't sell naked options in Adanient -this stock could open + or - 20% any morning and wipe your account out
  

Apr 27, 2023

Trade closed: target reached

This was a good trade - can then we reinitiated for next month as vols are still high