Reliance: Chart set up and trading strategy
Updated
Reliance
1937
- We see the stock in consolidation mode since November 2020
- 2015-2045 is crucial zone for Reliance on the upper side
- support near Blue line support zone (Currently near 1860) and 1800 odd levels
Given the set up one may consider the following strategy
Consider selling Reliance February 25, 2021 expiry 1750 Put Option (around 35)
&
Sell Reliance 2200 February 25, 2021 expiry 2200 Call Option ( around 35)
Net Premium receivable 70 points
Max profit potential Rs 17500/- per strategy lot till 25 February expiry giving a yield potential of 18% ROI (on Margin required)
Loss in strategy if closes above 2270 or below 1680 on 25 Feb 2021
Review points, In case if, Reliance closes above 2045, or below 1830 for 3 consecutive days.
Hit the Like button if you find it useful
Follow for more such ideas
Look for my previous ideas in Reliance in the Related ideas link below
Take care & safe trading...!!!
Disclaimer:
- 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
1937
- We see the stock in consolidation mode since November 2020
- 2015-2045 is crucial zone for Reliance on the upper side
- support near Blue line support zone (Currently near 1860) and 1800 odd levels
Given the set up one may consider the following strategy
Consider selling Reliance February 25, 2021 expiry 1750 Put Option (around 35)
&
Sell Reliance 2200 February 25, 2021 expiry 2200 Call Option ( around 35)
Net Premium receivable 70 points
Max profit potential Rs 17500/- per strategy lot till 25 February expiry giving a yield potential of 18% ROI (on Margin required)
Loss in strategy if closes above 2270 or below 1680 on 25 Feb 2021
Review points, In case if, Reliance closes above 2045, or below 1830 for 3 consecutive days.
Hit the Like button if you find it useful
Follow for more such ideas
Look for my previous ideas in Reliance in the Related ideas link below
Take care & safe trading...!!!
Disclaimer:
- 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
Note
On January 17, 2021 when Reliance was at 1937 we suggested a Short strangle strategy for the stock10 days down the line, Reliance results are out...
and stock is at 1941
Our Strategy update
1750 Put option (recommended selling around 35)
CMP 22
2200 Call Option (recommended selling around 35)
CMP 25
Net Profit in strategy
250* (70-47) = Rs 5750/- per strategy lot
Happy trading...!!!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.