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Prem_Agrawal
Jan 23, 2020 3:43 AM

POSITION in LICHSGFIN 

LIC HOUSING FINANNSE

Description

LICHSGFIN Max Pain point is at 440 Strike
Currently Market is trading at 470 ATM

We may witness a wild downfall in LICHSGFIN soon so if you are going LONG stay cautious and Trail your SL


Happy Trading...

Trade active

The market gave Sell Trigger as 472 was broken and it is trading at 467.85
So Shorted 470CE, 460CE, 450CE,
Premium is 6,11.35,19.35
Net Premium received 36.7

This is a positional Trade and we will wait until the stock goes close to 440 Strike as Max pain point is 440


Happy Trading...

Trade closed manually

Max Pain in LICHSGFIN has Shifted from 440 to 450, which is its current ATM Strike

Profit in 470 CE = 5.175
Profit in 460 CE = 9
Profit in 450 CE = 13.05
Lot SIze = 1300
Net Profit = 27.225 * 1300 = 35392

Our Profit is nearly 74% of Premium received which is good

Now LICHSGFIN is near its Trendline so a little bit confusion would be there in the stock and we may see a Spinning Top formation on Tuesday, you can benefit in that indecisive phase by applying Short Strangle.

Happy Trading...
Comments
brijeshb30
Hi if max pain is at 440, why don't you buy 440 PE. ????
Prem_Agrawal
@brijeshb30, Sir rather than buying 440 PE, I would short 450CE, 460CE, 470CE

I will post a new idea for that wait
Prem_Agrawal
@brijeshb30, See Brijeshb a 3% fall of Rs 14 was witnessed

We missed an opportunity to have a profit of Rs 51000 where I would have Shorted Naked Call Option of Strike above 440

But still, as I post this comment our position is in profit of Rs 13000

I hope you didn't miss this one as I did.
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