Tata Steel: Channel trade potential for September series
Tata Steel
- We observe Tata Steel trading in blue channel from 03 May to mid July
- currently it is trading in mirror image red channel
- RSI is between 40-60
Tata Steel could likely be revolving in the red channel for September month
For Cash buying any dips towards 1245-1260 may be considered as good entry level
__________________________________________________________________________________________________________
Given the set up, F&O strategy suggested for Tata Steel: Short Strangle
It involves selling both Call and Put option simultaneously
Sell 30 September expiry 1500 Call option
Sell 30 September expiry 1260 Put option
Combined Premium receivable approximately 42
Max profit potential in strategy Rs 35700/- per lot (11% yield potential)
Loss in strategy, if Tata Steel closes above 1542 or below 1218 on 30 September
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
- We observe Tata Steel trading in blue channel from 03 May to mid July
- currently it is trading in mirror image red channel
- RSI is between 40-60
Tata Steel could likely be revolving in the red channel for September month
For Cash buying any dips towards 1245-1260 may be considered as good entry level
__________________________________________________________________________________________________________
Given the set up, F&O strategy suggested for Tata Steel: Short Strangle
It involves selling both Call and Put option simultaneously
Sell 30 September expiry 1500 Call option
Sell 30 September expiry 1260 Put option
Combined Premium receivable approximately 42
Max profit potential in strategy Rs 35700/- per lot (11% yield potential)
Loss in strategy, if Tata Steel closes above 1542 or below 1218 on 30 September
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
Trade active:
1500 Call Option CMP 37
1260 Put Option CMP 8.50
Short strangle Trade is active
Net receivables 45.50
Lot size 850
1500 Call Option CMP 37
1260 Put Option CMP 8.50
Short strangle Trade is active
Net receivables 45.50
Lot size 850
Comment:
Tata Steel respecting the channel
We booked out from this Short strangle strategy with a 17 point profit per lot despite the volatile movement where we saw both up and down movement...
We do have a modified position where our risk is now covered for a fall up to 1121 on the downside and 1379 on the upside
Take care & safe trading...!!!
Tata Steel respecting the channel
We booked out from this Short strangle strategy with a 17 point profit per lot despite the volatile movement where we saw both up and down movement...
We do have a modified position where our risk is now covered for a fall up to 1121 on the downside and 1379 on the upside
Take care & safe trading...!!!
1500 Call option 31.60 (sold at 37)
1260 Put option 4.5 (sold at 8.5)
Net profit 850*(45.5 - 36.1) = Rs 7990/- per lot so far
Enjoy your week end...!!! ☺