SBIN: Chart set up and trading strategy for October month
Updated
SBIN
Observations:
- we see SBIN trading in a channel since 17 May
- if the blue line is taken out SBIN may fall up to 419-406 zone
- on the flip side, 467-472 has seen increase in supply in recent times
- if this zone is taken out, there is a potential for a rise up to 512 odd levels
- however it may encounter some resistance around channel top
- channel top on 28 Oct comes around 488
____________________________________________________________________________________________
Given the set up one may consider selling SBIN 28 October 2021 expiry
510 Call Option currently around 9 &
420 Put option currently around 4.2
(Max profit potential of 9.5% approximately.
The strategy covers risk for a rise in SBIN price up to 523.2 on the upside and fall in price up to 396.80 on the downside)
Any close in between these levels on 28 October and the strategy would be profitable)
If you find the analysis interesting, Like it &
Follow for more such trading ideas
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
Observations:
- we see SBIN trading in a channel since 17 May
- if the blue line is taken out SBIN may fall up to 419-406 zone
- on the flip side, 467-472 has seen increase in supply in recent times
- if this zone is taken out, there is a potential for a rise up to 512 odd levels
- however it may encounter some resistance around channel top
- channel top on 28 Oct comes around 488
____________________________________________________________________________________________
Given the set up one may consider selling SBIN 28 October 2021 expiry
510 Call Option currently around 9 &
420 Put option currently around 4.2
(Max profit potential of 9.5% approximately.
The strategy covers risk for a rise in SBIN price up to 523.2 on the upside and fall in price up to 396.80 on the downside)
Any close in between these levels on 28 October and the strategy would be profitable)
If you find the analysis interesting, Like it &
Follow for more such trading ideas
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
Note
Kindly note: in the strategy mentioned above, It is 410 Put option and not 420 Put option. The maths part is right. Kindly make a note of strike price
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Disclaimer
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