u always have 3 case gap up gap down flat( this case these days are unlikely) we will discuss how i m going to trade going ahead take case 1 which seems to be more likely for tomorrow, if we see gap up again u have 2 case price keeps going up price open up and starts falling I personally believe if gap-up will happen and if u r long one should book in gap-up as over all trend is weak u will immediately see a selloff. suppose it didn't happen and it break loc then 9550 or gap or island reversal gap whatever u say is going to act as massive resistance in case of the gap -- now in case of gap down we have supports which I plotted in chart
ultimately my understanding is market is going to toggle in between 9500 to 8900 for few days
my strategy will be on bounce i will sell 9550 and 9600 calls in dip 8900( this i will keep small qty as compared to calls ) a lot of talk abt stimulas in case stimulas comes --- i beleive it will be short lived
Sir your range of 9550-8900 could be taken up by a short straddle of 9150-9200. Since, my capital is less, I can’t short multiple lots of call/put at each rise or dip. So, is this approach correct? Once breaching breakeven, I plan on turning that to butterfly. Your comments sir.