The stock looks likely to have made a triple top around 430-450 band
- the stock is now trading below the yellow zone making it look weak
- staying below the yellow line zone the stock may potentially head towards the green line zone around 360...
- immediate support at 380 levels highlighted with dotted red line
- sustaining above 405-408 levels might invalidate the pattern
- The stock might consolidate between 408-380 levels till month end...
Given the view One may consider Short Strangle strategy for IOC November expiry
Sell IOC 30-November expiry 410 Call option & 380 Put option
Lot size: 1500
Call Strike Price: 410
Price: 4.35
Put Strike Price: 380
Price: 4.3
Understanding Reward and Risk in the trade
Max profit potential Rs 12975 per strategy lot if IOC closes anywhere in between 380 to 410 on 30-November 2017
Loss if IOC closes above 418.65 or below 371.35 on expiry day
Take care & safe trading...!!!
---------------------------------------------------------------------------------------------------------------------------------------- Below are links to previous updates on IOC and some other stocks where we have used Derivatives Strategies...
Trade active
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IOC Strategy Update Com 394.50 The stock has hardly moved...
Short strangle strategy doing well
IOC 410 Call option 1.6
IOC 380 Put option 2.6
Total profit 1500*(8.65 - 4.2)= Rs 6675
Happy trading...!!!
Trade closed: target reached
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IOC CMP 390
On expected lines stock hardly moved since 16 Nov...
You don't need runaway rally to earn... You Just need to understand the market conditions & apply different strategies which may fit in those conditions...
Here Short strangle strategy working to perfection...