Divis Lab: At support and trading strategy
Chart setup
The stock has previously taken support at 3450 odd levels in late May - June 2022 / Aug 2022 / Oct 2022
- it broke down below that in November and the same level acted as resistance in for a month and a half
- now again trading above the crucial levels
- blue trendline support comes at 3330 odd levels on 25 Jan 2023
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My Trading strategy
Given the set up going with a Put short
Sell 3400 put option currently around 92-95
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Gain potential and understanding risk profile
The strategy has a max profit potential of Rs 13800 per lot and (ROI potential of 15.5% approximately)
The strategy has inbuilt loss protection for a fall up to 3308 till Jan expiry.
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My Risk Management levels
On the downside I would be watching out for 3405-3388 odd levels.
It give enough time and scope to adjust / exit in case view gets invalidated.
Take care & safe trading...!!!
Hope the analysis and explanation of trading strategy helps you plan and manage your trade.
Do let me know if you find the analysis and insights helpful.
To trade with me, Do Like and Follow for getting more trading ideas like these...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
The stock has previously taken support at 3450 odd levels in late May - June 2022 / Aug 2022 / Oct 2022
- it broke down below that in November and the same level acted as resistance in for a month and a half
- now again trading above the crucial levels
- blue trendline support comes at 3330 odd levels on 25 Jan 2023
___________________________________________________________________________________________________
My Trading strategy
Given the set up going with a Put short
Sell 3400 put option currently around 92-95
____________________________________________________________________________________________________
Gain potential and understanding risk profile
The strategy has a max profit potential of Rs 13800 per lot and (ROI potential of 15.5% approximately)
The strategy has inbuilt loss protection for a fall up to 3308 till Jan expiry.
____________________________________________________________________________________________________
My Risk Management levels
On the downside I would be watching out for 3405-3388 odd levels.
It give enough time and scope to adjust / exit in case view gets invalidated.
Take care & safe trading...!!!
Hope the analysis and explanation of trading strategy helps you plan and manage your trade.
Do let me know if you find the analysis and insights helpful.
To trade with me, Do Like and Follow for getting more trading ideas like these...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Suggested selling between 92-95 (Sold at 94)
Last Traded Price 65.5
Profit of Rs 4275/- per lot so far
Trust the analysis has helped
Take care & safe trading...!!!