Hindalco: Chart set up and trading strategy

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...!!!

- 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
Below the orange line doors would open up on downside and probability of Hindalco potentially falling up to 468 / 463 levels might be higher
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...!!!🙂