The chart reflects certain pattern & based on our interpretation, we might see some consolidation in prices for the next month or two.
If Aurobindo Pharma is to replicate a Mirror image pattern then a potential Short strangle strategy may be considered.
Consider selling Aurobindo Pharma
720 Call option around 20
&
580 Put option around 16
Lot size 1000
Max profit potential in strategy Rs 35000/-
Loss in strategy if Aurobindo Pharma closes above 755 or below 545 on 28-May expiry day
---------------------------------------------------------------------------------------------------------------- Cash buying may be considered in 580-615 range ----------------------------------------------------------------------------------------------------------------
Trading in Options involves risk. Understand & do follow risk management measures. Consult your financial advisor.
Take care & safe trading...!!!
Trade active
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720 call option opened at 21.75 made a high of 22.5 giving us a good price to sell above 20
580 Put option too made a high of 16.40 giving us our price of 16 to sell
Trade is active
Trade active
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Strategy Update 720 Call option sold @ 21.50 is currently at 17.8
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