It was mentioned that
- Nifty closing today would be subdued
- not expecting any firecrackers today
Range given for today was 16190-16302 with possibility of extended range of 16160-16330
The level of 16330 also had it's importance from point of view and was mentioned in this post as T3 level
Nifty levels were identified beforehand based on Technical and F&O data analysis...
That approach of relying on studies and doing our homework, gave us clarity and be more rational in our trading decisions, rather than taking decisions based on greed, hope and fear.
Nifty traded most of the part within the narrow range mentioned. It did trade in the extended zone for around 2 hours but eventually closed just 35 points above (0.22%) at 16294 well within the narrow range mentioned.
Our Trading Strategy update
Given the conditions, we waited patiently and when Nifty entered the extended zone, Strategy suggested during live markets, was to consider selling 26 August expiry 16500 Call option around 100.
It gave ample opportunity to sell between 97-102 eventually closing the day in profit at 76.
Remember Technical and Derivatives Analysis is not about being right or wrong but more about understanding your risk and reward potential in the trade and looking for opportunities where Risk::reward ratio is favorable to trade
If you understand the above rule and can apply in your trading system, you won't need to Like or Follow me
But if you decide to follow me
Don't just follow the King of Options blindly 😉
Learn to identify opportunities independently
Take care & safe trading...!!!
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Data is dynamic and can change in no time
- 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
16500 Call Option update 60.80
One may consider to book profits and enjoy the week end