LIC HSG FIN: Chart set up & trading strategy

CMP 403.20

- The stock is running in to a series of potential line of resistance around 404 / 418 / 424 / 439

Given the chart set up

One may consider selling LIC HSG FIN 440 Call Option for Jan 28 expiry

Lot size 2000
CMP 7.1

Max profit potential Rs 14200/- per lot. Yield potential of 8.5% on Margin Capital
Risk cover for a rise in price up to 447.10 till expiry

Take care & safe trading...!!!

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- 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

LICHF is at the top resistance level
Our 440 Call option is at 21

We have sold a 470 Call option at 10.4 now
This is an adjustment trade and it increases our risk cover for a rise up to 457.50

Do your own risk analysis

Take care & safe trading...!!!
LIC HSG FIN takes resistance exactly at the arrow mark highlighted in the above chart.

Our adjusted strategy is in profit once again
Trade closed: target reached: LIC HSG FIN

Not the easiest of trades by any means... It did scare us intra day on two occasions but on a closing basis, it was manageable as the closing high it made is of 442.15 ( our strategy was to sell 440 Call at 7.1 which meant our intrinsic sell was anyways at 447.1)

Also the stock had done well for us on many of previous occasions. You can search for my ideas on the stock... This time too the analysis and the final outcome of the strategy did not disappoint...

440 Call Option update ( Sold at 7.1)
CMP 1.5

470 Call option ( Sold at 10.4)
CMP 0.40

Net Profit in strategy

2000 * (5.6 +10) = Rs 31200/-

Happy trading...!!!


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