Apply Long Straddle in VEDL as high delivery is seen in NSE Reports as traders are expecting a dividend declaration of 10% but Charts are showing a Downmove
Option Chain Data suggest Strong Resistance at 150 level and Support is at 140 level but on 1-minute charts, closing has taken place with a Hammer Candlestick which has also Penetrated psychological Resistance which shows High Bullish Sentiment.
Most Probably we may see an up move soon but to be on a safe side we are applying Long Straddle at 145 Strike
Call Premium is 3 Rupees
Put Premium is 2.45 Rupees
Call Delta is 0.55
Put Delta is -0.45
Net Delta is 0.1
We will but 1 Lot of VEDL which is 3000
Our Position's Delta will be 300
So although we want our positions to be Neutral the Hedging has lead to a Long Position but as our View is Bullish we are good to go now just let the market do its thing.
Happy Trading.....
Option Chain Data suggest Strong Resistance at 150 level and Support is at 140 level but on 1-minute charts, closing has taken place with a Hammer Candlestick which has also Penetrated psychological Resistance which shows High Bullish Sentiment.
Most Probably we may see an up move soon but to be on a safe side we are applying Long Straddle at 145 Strike
Call Premium is 3 Rupees
Put Premium is 2.45 Rupees
Call Delta is 0.55
Put Delta is -0.45
Net Delta is 0.1
We will but 1 Lot of VEDL which is 3000
Our Position's Delta will be 300
So although we want our positions to be Neutral the Hedging has lead to a Long Position but as our View is Bullish we are good to go now just let the market do its thing.
Happy Trading.....
Trade closed manually