Reliance - use a low risk short strangle to benefit from upside
Reliance has been correcting for a while, a short strangle strategy can be attempted to benefit from the reversal.
This is far safer in comparison with a naked long or short future positions.
Sell 1500 Put and 1560 Call between 25-30 Rs, each, try to manage a payout of 55-60 Rs. from both positions.
The position will give max. profit of Rs. 55-60 per unit, if Reliance trades between 1500-1560, and offer an opportunity to exit at par between 1445 and 1615 on expiry (Jan 30).
Still keep a stop loss of Rs. 75 payout, incase there is a wild move in prices, beyond the expected range.
You may follow us on this platform or using @i2gain on other popular SM channels for more of such low risk strategies.
Remember to study the strategy thoroughly and carefully, preferably consult some financial consultant who understands options before taking a position based on this strategy or any position for that matter.
This is far safer in comparison with a naked long or short future positions.
Sell 1500 Put and 1560 Call between 25-30 Rs, each, try to manage a payout of 55-60 Rs. from both positions.
The position will give max. profit of Rs. 55-60 per unit, if Reliance trades between 1500-1560, and offer an opportunity to exit at par between 1445 and 1615 on expiry (Jan 30).
Still keep a stop loss of Rs. 75 payout, incase there is a wild move in prices, beyond the expected range.
You may follow us on this platform or using @i2gain on other popular SM channels for more of such low risk strategies.
Remember to study the strategy thoroughly and carefully, preferably consult some financial consultant who understands options before taking a position based on this strategy or any position for that matter.
Trade closed: target reached