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Reliance: Chart set up & trading strategy for July F&O expiry

NSE:RELIANCE   RELIANCE INDS
Reliance

The stock recently made a high of 2261

On the lower side, 2067 / 2000 are important support levels

Given the set up

One may consider the following Short strangle strategy for July series

Sell 29 July expiry 2260 Call option around 35
Sell 29 July expiry 2000 Put option around 25

Max profit potential of Rs 15000 per strategy lot till expiry (approximately 14% ROI )
Loss in strategy only if Closing on 29 July is either above 2320 or below 1940

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: Reliance

Strategy update ( given on June 25, 2021)

Reliance 29 July expiry

2260 Call option : 11.50 (suggested selling around 35)
2000 Put optoin : 12.50 (suggested selling around 25)

Profit in the strategy
250 * ( 60 - 24) = Rs 9000/- per strategy lot

For risk management measures,
Consider 50% profit booking if having more than 1 Strategy lots or
consider booking profits as per risk your appetite

Happy trading...!!! 🙂
Trade closed: target reached: Reliance

Results would be announced today after market hours but our strategy has already done its work.

On 25 June 2021

We highlighted support at 2067 / 2000. Low made in last 1 month so far 2066.10

Need we say any thing more how Technical Analysis can be useful...

It's been almost a month now when the strategy was suggested.

Strategy update ( given on June 25, 2021)

Reliance 29 July expiry

2260 Call option : 6.1 (suggested selling around 35)
2000 Put option : 2.9 (suggested selling around 25)

Profit in the strategy
250 * ( 60 - 9) = Rs 12750/- per strategy lot

Consider booking profits and close the trade

Enjoy and Happy trading...!!! 🙂

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Comments

Hi, can you please send a similar set up for Bajaj Finance - thanks
Regards
Navin Bhalla
navinbhalla@gmail.com
Reply
@navinbhalla, Hi Navin, apologies missed reading your message.

Bajaj Finance has a different chart pattern and similar strategy may not be applicable
Reply