indiamarketoutlook

SBIN: Chart setup & Strategy

NSE:SBIN   STATE BK OF INDIA
SBIN
CMP 201

Observation

- the stock is having support around 192 levels

- resistance is seen around 218-220 levels


Given the setup one may consider Short strangle strategy for SBIN

Consider selling SBIN 30 July expiry

220 Call Option between 4.5 - 5 ( CMP 4.5)
& also

185 Put Option between 4 - 4.5 ( CMP 4)

Lot size 3000

Profit potential Rs 25500/ - to Rs 28500/- ( total premium collection 8.5- 9.5) per lot as per CMP
Yield potential of 12.75% - 14.25%

Loss in strategy if closing on 30 July 2020 is below 176.5 or above 228.50

Take care & safe trading...!!!