If Axis goes down to 480-483 there it has massive support so will it be good to enter long position and bought 520 CE or 530 CE?
@Amit_Ghosh what are your views on that?
Amit_Ghosh
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@girish1001, I am against buying options. We are just analyzing someone else's trade. Instead of buying CE. I will opt for 480PE. And close all trades if Axis crosses 478.
JamesPeter
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@Amit_Ghosh, yes it makes sense as axis not looking too strong and besides earning season is starting
gnanas
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he entered long on 03-Mar.. saw a big red candle, booked part profits and sold 520 CE as well.. all on 14th Mar
1. As the breakdown progressed, why didn't he sell 500 CE as well when it broke below 490?
2. At 6, he switched positions. Booked profits on 520 CE and entered bought 530 CE.. anticipating breakdown failure?
Amit_Ghosh
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@gnanas, Big red candle always means gap up and then falling like dominoes. He booked on the first gap up. Theta will kill 520 CE faster than 500 CE and margin will be also low for that trade.
530 CE costed him significantly lesser margin and hence less risk. If Axis touches 515; I assume he will get his breakeven point ?
@Amit_Ghosh what are your views on that?