ADANIENT - Income generation via call spreads

ADANI ENTERPRISESNSE

Description

⋅ Apr 4, 2023 12:23 AM

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 9:46 AM

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

Comments

kunal_finner

⋅ Apr 12, 2023 6:32 PM

Lets hope it works out! BTW the market is in a bullish phase so do have long exposure elsewhere

blissfulOwl5007

⋅ Apr 12, 2023 6:31 PM

holding 1900ce @ 115, 2 lot, your advice & view !!

kunal_finner

⋅ May 2, 2023 4:11 AM

@blissfulOwl5007, No longer a wise strategy to short this via calls - market is bullish and also IV is too low. Look to buy volatility now