ADANIENT - Income generation via call spreads

kunal_finner Updated   
  • 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
Trade closed: target reached:
This was a good trade - can then we reinitiated for next month as vols are still high

Best advice ever - Cut your position size by half.

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