Nifty50 has just tested resistance at trend line. Short

NSE:NIFTY1D

Nifty 50 IndexNSE

Description

⋅ Dec 16, 2018 9:09 AM

Nifty50 has just tested resistance at trend line.

Sell CMP: 10800 ; SL: 10840 ; TP : 10500 ; R:R - 7.5

Comment

⋅ Dec 18, 2018 12:53 PM

The trade has hit the stop loss.

Comments

gregferns

⋅ Dec 16, 2018 11:48 AM

Just for knowledge how do you sell exactly when you say SELL at CMP 10800 ??? Buy a put ? if yes, what will be the strike price ? 10700 PE or 10600 PE ? Can you please elaborate ?
thanks in advacne
Greg

viky.mat

⋅ Dec 16, 2018 5:30 PM

@gregferns, offcourse , sell means u need to buy PUT, choice is urs, to buy PUT for 10600 or 10500 or 10700. IV & Time Decay plays important factor though

UnknownUnicorn3947190

⋅ Dec 18, 2018 12:52 PM

@gregferns, You can buy put, if your risk reward favors. For us we generally deal in futures or in the money options.

gregferns

⋅ Dec 18, 2018 1:28 PM

@Tactical_Charts, @viky.mat thanks.....

So basically you can either BUY a PUT or SELL ITM CE ?? or deal in FUTURES (which if i'm not mistaken requires a lot of margin money) ??

regards

UnknownUnicorn3947190

⋅ Dec 18, 2018 1:32 PM

@gregferns, Correct. If you think stock will go down. Then you can sell call option or buy put option (both have some benefits & drawbacks).
Yes, for futures you need substantial margin.