SBIN Strategy for November month
Updated
SBIN
CMP 316
Link to previous post
https://in.tradingview.com/chart/SBIN/ofOwkIac-SBI-MAKING-IT-LARGE/
https://in.tradingview.com/chart/SBIN/OQi7XwJs-SBI-Whats-the-story/
The stock has jumped big time from 3-4 trading sessions back 250 odd levels to 320 odd levels
- the stock has touched upper end of trend line and has stepped down signalling it to act as resistance
- 305-312 is important level for SBI on the lower side
Given the set up one may consider Short Strangle strategy for SBI November month
Sell
SBIN November expiry 300 Put option around 11
&
SBIN November expiry 330 Call option around 13
Lot size 3000
Total incoming
3000 * (11+13) = Rs 72000 / -
Maximum profit in this strategy is of Rs 72000/- if SBIN stays anywhere between 300-330 zone on expiry day i.e on 30-Nov-2017
( For risk management consider to move out of the strategy if SBIN goes above 345 or below 290 in Equity )
The strategy covers some risk for movement beyond the range but do understand that Trading in Futures & Options involves risk.
Loss will occur if SBIN closes above 354 or below 276 on expiry day so give importance to Risk Management
Understand the risk:reward potential and do necessary homework before taking any decision
Take care & safe strategy
CMP 316
Link to previous post
https://in.tradingview.com/chart/SBIN/ofOwkIac-SBI-MAKING-IT-LARGE/
https://in.tradingview.com/chart/SBIN/OQi7XwJs-SBI-Whats-the-story/
The stock has jumped big time from 3-4 trading sessions back 250 odd levels to 320 odd levels
- the stock has touched upper end of trend line and has stepped down signalling it to act as resistance
- 305-312 is important level for SBI on the lower side
Given the set up one may consider Short Strangle strategy for SBI November month
Sell
SBIN November expiry 300 Put option around 11
&
SBIN November expiry 330 Call option around 13
Lot size 3000
Total incoming
3000 * (11+13) = Rs 72000 / -
Maximum profit in this strategy is of Rs 72000/- if SBIN stays anywhere between 300-330 zone on expiry day i.e on 30-Nov-2017
( For risk management consider to move out of the strategy if SBIN goes above 345 or below 290 in Equity )
The strategy covers some risk for movement beyond the range but do understand that Trading in Futures & Options involves risk.
Loss will occur if SBIN closes above 354 or below 276 on expiry day so give importance to Risk Management
Understand the risk:reward potential and do necessary homework before taking any decision
Take care & safe strategy
Trade active
SBI Short strangle strategy updateSBI 330 Call option cmp 11.40
SBI 300 Put option cmp 7.25
Current profitability in the strategy [ (13+11) - (10.5+7.5) ]*3000 = Rs 18000/-
Continue to hold
Take care & safe trading...!!!
Trade active
SBI Short strangle strategy update SBI 300 Put option cmo 2
SBI 330 Call option cmp 9
Current profitability in the strategy [(11+13) - (2+9)] *3000 =
(24-11) *3000 = Rs 39000/-
Continue to hold
Take care & safe trading...!!!
Trade active
SBI Short strangle updateSBI 300 PUT OPTION CMP 0.50
SBI 330 CALL OPTION CMP 9
Current profitability in the strategy Rs 43500
Consider booking profits in SBI 300 Put option at 0.50 piase and hold 330 Call option
Take care & safe trading....!!!
Trade closed: target reached
Based on SBIN chart reading and foreseeing consolidation for November month, our Short strangle strategy in SBI works to perfection and gives the expected resultSBI Short strangle update
SBI 300 PUT OPTION CMP 0.50 (profit booking done on 23rd Nov)
SBI 330 Call Option CMP 0.40
Total profit in strategy (24 - 0.90) * 3000 = Rs 69300/-
Enjoy & happy trading...!!!
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