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indiamarketoutlook
May 7, 2020 6:43 PM

Aurobindo Pharma : Mirror image trade potential & strategy 

AUROBINDO PHARMANSE

Description

Aurobindo Pharma
Closing price 648

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

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Cash buying may be considered in 580-615 range
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Trading in Options involves risk. Understand & do follow risk management measures. Consult your financial advisor.

Take care & safe trading...!!!

Trade active

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

Strategy Update
720 Call option sold @ 21.50 is currently at 17.8

&

580 Put option Sold @ 16 is currently at 9.50

Net so far 1000*( 37.5 - 27.3 ) = Rs 10200/-

Trade active

Strategy Update
720 Call option cmp 13.35
580 Put option cmp 4.9

Net so far 1000*( 37.5 -18.25 ) = Rs 19250/-

Enjoy & have a gr8 weekend...!!! :-)

Trade closed manually

Auro Pharma CMP 668

Strategy Update
Broader market has seen wild swings, yet Aurobindo has been fairly quiet & has stayed within a small range.

720 Call option cmp 10
580 Put option cmp 4.75

Net so far 1000*( 37.5 -14.75 ) = Rs 22750/-

The strategy has worked well & is rewarding a good profit.
Consider to book profits as per your risk appetite

Happy & safe trading...!!!
Comments
arunindy
Hello - Where, how to practice these analysis. Complete beginner. Please guide. Thxs.
indiamarketoutlook
@arunindy, hi

In terms of using software to analyse charts, tradingview provides all the necessary tools. We are looking to conduct online session very soon on Analyzing charts & making the most of it. If interested will send you the details & you can join the session.

Happy learning...!!!
arunindy
@indiamarketoutlook, That would be great help. Thank you.
NitinDhanrajani
@indiamarketoutlook,
I am also interested in learning from you. Kindly inform me too. Thanks.
indiamarketoutlook
@NitinDhanrajani, Most welcome. Yes will surely keep you notified....
sanjaytolani
@indiamarketoutlook, , sir please inform me also
indiamarketoutlook
@sanjaytolani, Thank you for showing your interest. Will keep you updated...
champvimal
@indiamarketoutlook, Plz inform me too. Thanks
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