The stock is near 2008 highs. It is an important level and is likely to get some respect. Expect some resistance around 1620-1650 zone. In the longer run, any dips towards 1360-1280 will provide good entry opportunity in the stock from long term accumulation perspective...
For the current set up, One may consider the Strategy to
Sell : - Reliance 28-September-2017 Call Option
Strike Price: 1620
Lot size: 500
Maximum profit potential Rs 11000/- per lot on Margin requirement of Rs 112000/- (approximately 10% yield potential)
The strategy will provide loss protection for rise in stock up to 1642 on September expiry day...
(Thats loss preotection of Rs 35000/- per lot)
We have given important levels to watch out for from medium term perspective...
Do review your trading plan and
Plan your trade accordingly...
Take care & safe trading...!!
That's a profit of Rs 3150/- per lot so far
Pre adjustment details
Old Strike Price: 1620
Old Lot size : 500
Old Selling price: 22
Adjustment post stock bonus
New Strike Price: 810
New lot size: 1000
Selling price: 11
The stock closed September series below 810 at 786.45 giving us full profit of Rs 11000/- per lot
It is an expiry strategy and the view is the stock should close below 1620 in september series
So if the stock jumps and closes above 1620 in Spot price then one may consider to exit from the strategy...
Remember as suggested the strategy will turn in to loss only if the stock goes above 1642 on Sept expiry day...
We will keep an update on the same if the stock goes above 1600 though...