PATANJALI - OPTIONS TRADE SETUP

PATANJALI OPTIONS TRADE SETUP – 17 JULY
Spot: ₹1859.6
Trend: Bullish
Volatility: Moderate IV rise (38–41%)
Lot Size: 300
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1. Bullish Trade (Naked options as per trend)
Best CE: Buy 1860 CE @ ₹59.45
Why: Strong continuation signal with rising OI and price, heavy volume, and ideal gamma/vega mix for price moves.
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2. Contrarian Trade (Naked options against trend)
Best PE: Buy 1800 PE @ ₹31.3
Why: Defensive Put play with unusually high activity and rising IV → could work as hedge if breakdown begins below ₹1840.
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3. Strategy Trade (As per trend + OI data)
Strategy: Bull Call Spread → Buy 1860 CE / Sell 1920 CE
Net Debit: ₹59.45 - ₹35.5 = ₹23.95
Max Profit: ₹60 - ₹23.95 = ₹36.05
Max Loss: ₹23.95
Risk:Reward ≈ 1:1.5
Lot Size: 300
Total Risk: ₹7,185
Max Profit: ₹10,815
Why:
• Massive Long Buildup in CE chain (1820 to 1960), with 1860 CE leading in volume and OI surge
• 1860–1920 spread captures ideal move zone before resistance at 1960
• IVs rising moderately → favors debit spread entry
• PE chain showing Short Buildup, especially at 1800/1840/1880 → downside bets getting squeezed
• Balanced risk with great R:R (1:1.5) near breakout zone — clean bullish continuation setup
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📘 My Trading Setup Rules
Avoid Gap Plays
→ Check pre-open price action to avoid trades influenced by gap-ups/gap-downs.
Breakout Entry Only
→ Enter trades only if price breaks previous day’s High (for bullish trades) or Low (for bearish trades).
Watch Volume for Confirmation
→ Monitor volume closely. No volume = No trade.
Enter on Strong Candle + Volume
→ Execute the trade only if a strong candle appears with increasing volume in the direction of the trade.
Defined Risk:Reward Only
→ Take trades only if R:R is favorable (ideally ≥ 1:2).
Premium Disclaimer
→ Option premiums shown are based on EOD prices — real-time premiums may vary during execution.
Time Frame Preference
→ Trade with your preferred time frame — this strategy works across intraday or positional setups.
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⚠ Disclaimer (Please Read):
• These Trades are shared for educational purposes only and is not investment advice.
• I am not a SEBI-registered advisor.
• The information provided here is based on personal market observation.
• No buy/sell recommendations are being made.
• Please do your own research or consult a registered financial advisor before making any trading decisions.
• Trading involves risk. Always use proper risk management.
I am not responsible for trading decisions based on this post.
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