Tata Motors: Chart set up & trading strategy
Updated
Tata Motors
Observations
- the stock has taken a toll exactly from the Line of Resistance (red line)
- currently the stock is trading near the green trendline
- 280 levels has acted as support on multiple occasions highlighted by green arrow
- 335-340 levels has acted as resistance on multiple occasions highlighted by red arrow mark
Suggested trading strategy for the given set up
Short strangle Strategy
This consists of selling both Call and put option simultaneously
Sell 29 July expiry 340 Call option around 5.3
&
Sell 29 July expiry 280 Put option around 5
Lot size 2850
Max profit potential Rs 29355/- per lot (approximately 11.5% yield potential till 29 July 2021)
Loss in strategy if Tata Motors closes below 269.70 or above 350.30
Take care & safe trading...!!!!
Observations
- the stock has taken a toll exactly from the Line of Resistance (red line)
- currently the stock is trading near the green trendline
- 280 levels has acted as support on multiple occasions highlighted by green arrow
- 335-340 levels has acted as resistance on multiple occasions highlighted by red arrow mark
Suggested trading strategy for the given set up
Short strangle Strategy
This consists of selling both Call and put option simultaneously
Sell 29 July expiry 340 Call option around 5.3
&
Sell 29 July expiry 280 Put option around 5
Lot size 2850
Max profit potential Rs 29355/- per lot (approximately 11.5% yield potential till 29 July 2021)
Loss in strategy if Tata Motors closes below 269.70 or above 350.30
Take care & safe trading...!!!!
Trade closed: target reached
The strategy gave the desired results of max profit
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.