indiamarketoutlook

SBIN Strategy for November month

NSE:SBIN   STATE BK OF INDIA
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

Trade active: SBI Short strangle strategy update

SBI 330 Call option cmp 11.40

SBI 300 Put option cmp 7.25

Current profitability in the strategy *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 *3000 =

(24-11) *3000 = Rs 39000/-

Continue to hold

Take care & safe trading...!!!
Trade active: SBI Short strangle update

SBI 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 result

SBI 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...!!!
Excellent Strategy :-) Thanks
Reply
@hotpot64, Thanks for the appreciative words... :-)
Reply
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