indiamarketoutlook

ICICI Bank: Chart set up and Trading strategy...!!!

NSE:ICICIBANK   ICICI BANK
ICICI Bank
Closing price 527

We observe
- The stock trading in phases of Consolidation and directional trade phase alternately
- The stock has just given a directional movement
- Are we going to see a Consolidation Phase now?

Given the chart setup:
One may consider an Iron Condor Strategy here. It is a 4-part combination of Sell and Buy of Call & Put options

- Sell 560 Call option (Closing Price 8.50)
- Buy 580 Call option (Closing Price 4.60)

- Sell 500 Put Option (Closing Price 7.35)
- Buy 480 Put Option (Closing Price 3.65)

The strategy would have a max profit of Rs 10450/- if it closes anywhere in between 500-550 on 28 Jan 2021.
Yield potential on strategy 14%

Loss in strategy if ICICI Bank Closes below 492 or above 558 on 28 January 2021

Any trading decision should be taken after assessing your risk management and if you are comfortable with the risk involved as against the reward potential it has.

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

Trade active: 560 Call Option 9 (Sell)
580 Call option 4.6 (Buy)

500 Put option 5.5 (Sell)
480 Put option 2.3 (Buy)

Net premium receivable 7.6
Lot size 1375

Trade is active
Trade active: Important correction note: Loss in strategy if closing below 492.40 or above 567.60

Comments

correction : "Loss in strategy if ICICI Bank Closes below 492 or above 568 on 28 January 2021" ---568 instead of 558.
Reply
indiamarketoutlook hemantmandhare
@hemantmandhare, Thanks Hemant for the correction.. 🙏🙏😊
Reply
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