indiamarketoutlook

Reliance: Chart set up and trading strategy

NSE:RELIANCE   RELIANCE INDS
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




Comment: On January 17, 2021 when Reliance was at 1937 we suggested a Short strangle strategy for the stock

10 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...!!!

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out