Short 6800PE CMP126.
Capital requirement 10,00,000 Rs (10 Lakh).
Target 1% per month.
This is continuation of my Maruti Cash covered trades posted in Sensibull for which I can't post link here.
For historical reference
T#1 - Shorted 6400PE @23 (July)
T#2 - Shorted 6800PE @71 (Aug)
T#3 - Shorted 7200CE @22 (Aug)
T#4 - Shorted 7000CE @90 (Sept)
This ended with...
The stock recently made a high of 2261
On the lower side, 2067 / 2000 are important support levels
Given the set up
One may consider the following Short strangle strategy for July series
Sell 29 July expiry 2260 Call option around 35
Sell 29 July expiry 2000 Put option around 25
Max profit potential of Rs 15000 per strategy lot till expiry...
Gave a massive breakout. It is not wise to jump into the trade right away since SL will be huge.
Traders with FOMO can add 30% of their usual allocation at this level and add more if there is retest of the previous resistance zone.
Tgram: Stocks 101
The current drop might have surprised you but have a look at this data below and see for yourself how each participants had positioned themselves on Friday and decide for yourself if you had access to this valuable information before trade could you have done better...?
This data analysis will tell you how various participants Retail, FIIs and Proprietary...
In our previous post we had highlighted the importance of 8986-9027 level. That level is still being respected. Nifty has closed in the said range at 8993.
Let’s see what data has to say for the expiry week 16th April 2020.
FIIs sold 8.46K contracts worth 474.69 Cr.
FIIs booked profits and squared off 7489 Long Contracts and they added just 979 Short...
Nifty has been very volatile and it has been swinging 500 points just like that....
What use to take months now is happening in a couple of hours...
So what can one do in such situation
Option 1 is stay away from market
Trade with more focus on risk management.
For the current market conditions
One may consider the following...
The stock looks likely to have made a triple top around 430-450 band
- the stock is now trading below the yellow zone making it look weak
- staying below the yellow line zone the stock may potentially head towards the green line zone around 360...
- immediate support at 380 levels highlighted with dotted red line
- sustaining above 405-408...