Will Nifty take support at previous top levels. Pattern gets invalidates if Nifty closes below gap of 15580 on a weekly closing basis.
Trading strategy for the given set up
One may consider selling Nifty 29 July expiry
15600 Put option
Lot size: 50
(Yes, you have read it correctly... Nifty lot size is changing from next month)
The strategy provides a max profit potential of Rs 10000 - Rs 11000/- per lot and has an approximate 11-12% yield potential till 29 July.
More importantly it also provides risk protection for a fall in Nifty price up to 15400-15380 till 29 July expiry giving enough space to adjust / exit if Nifty movement is otherwise
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
Nifty 15600 Put option gave ample opportunity to be sold above 240 levels ( Open and high of 268.10) providing good risk::reward ratio
On a closing basis Nifty managed to close above the red dash line at 15633 odd levels
Nifty 15600 Put Option
Sold @ 245
Profit of 80 points so far per lot