Hindalco: Chart set up and trading strategy
Updated
Hindalco
CMP 486
Potential Line of resistance around expiry comes at 513 levels
_____________________________________________________________________________________________________
Given the set up, one may consider to Bear Call spread strategy
Sell 510 Call option around 5 &
Buy 540 Call Option currently around 1.7
Lot size 2150
Net receivables 3.3 * 2150 = Rs 7095
Yield potential of approximately 8% on margin requirement
Importantly strategy has in built loss protection for a rise in stock price up to 513.30 till expiry
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- 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
CMP 486
Potential Line of resistance around expiry comes at 513 levels
_____________________________________________________________________________________________________
Given the set up, one may consider to Bear Call spread strategy
Sell 510 Call option around 5 &
Buy 540 Call Option currently around 1.7
Lot size 2150
Net receivables 3.3 * 2150 = Rs 7095
Yield potential of approximately 8% on margin requirement
Importantly strategy has in built loss protection for a rise in stock price up to 513.30 till expiry
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- 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
Comment
Below the orange line doors would open up on downside and probability of Hindalco potentially falling up to 468 / 463 levels might be higher
Comment
As Technical Analysis reflected, we see Hindalco falling further once it broke the orange line
Follow for more such ideas
But don't follow blindly
Learn to identify opportunities independently
Happy trading...!!!🙂
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