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BEL: Chart set up and trading strategy BEL Observations: - Head & Shoulders pattern with stock trading at neck line Target for the current setup 187 Trading strategy that one may consider: Buy 200 Put and Sell 185 Put to reduce your cost 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
NSE:BELShort
by indiamarketoutlook
4
TCS Strategy creation explained ahead of its resultsIn this video, I share how I have created in excel TCS Bull Call Spread and TCS ATM Short Straddle. I have explained all that is needed for the purpose of creating the strategies. Please note that I may / may not execute the trade depending upon how the funds position is closer to the day end. If you have liked the video, please let me know and if you feel something else needs to be included, please feedback on the same. Best wishes, Umesh
NSE:TCS
by AVENUESOFINVESTMENT
2
LIC HSG FIN: Chart set up & trading strategyLIC HSG FIN Observations - stock is at important resistance zone if this zone is taken out next resistance level is around 476-484 levels - the red line of resistance and grey horizontal resistance line coincides around 484 on 28 October - on the down side green line support on 28 October comes at 410 odd levels Given the important levels Strategy that may be considered Short strangle Sell 480 Call option currently around 9.2 & Sell 410 Call option currently around 4.8 Max profit potential Rs 28000 per lot (yield potential of approximately 11.5% on margin requirement till Oct expiry) Strategy has inbuilt loss protection for a rise up to 494 on the upside and 396 on the downside. Take care & safe trading...!!! Like & Follow for more such trading ideas 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
NSE:LICHSGFIN
by indiamarketoutlook
3
Infy: Chart set up and trading strategyInfy - Come October we have the result season in front of us Looking at the chart set up now: - The stock has fallen from 1760 odd for the 2nd time and establishes the importance of the zone as possible resistance zone - on the lower side 1595 zone acted as resistance earlier and has a possibility of acting as support zone Given the set up, Strategy that may be considered Short Strangle Sell 1820 Call option currently around 26 Sell 1580 Put option currently around 26 Max profit potential Rs 31200/- per strategy lot (Yield potential 17% approximately till 28 October 2021) Inbuilt loss protection for a - rise up to 1872 on the upside & - fall in price up to 1528 on the lower side 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
NSE:INFY
by indiamarketoutlook
Indusind Bank Ready to FlyI am back with another trade recommendation.Long trade is coming in indusinbank there is breakout in Daily timeframe plus it break out also in Hourly time frame and most of the indicators are also supporting.Its a swing trade so can also trade in options but only if your trade capacity allows you because it can give you loss but on the other side if market supports and and it moves upper side it has great potential to give you huge profit so trading @this level is worth taking risk.Happy trading
NSE:INDUSINDBKLong
by bhanu2018
Trying to catch an ITC breakoutI tried multiple times to catch a breakout on ITC and it has had it's ups and downs. 1st position I built was on 1st June. I tried to be a little greedy with the possibility of a reward, chose Options. Bought 220 CE and ITC being ITC promptly retraced back below resistance, and pretty much wiped out the money in the position. The 2nd time I tried a month later when the pullback looked promising, and this time I went with a Future contract instead. It again fizzled out and I had to exit early as the Future position was naked and had started to bleed losses. The 3rd time I built the position the right way. I hedged my futures with just OTM puts, thereby capping the loss possibility. With the hedge margin benefit, I could open double the position and that offset the "loss" due to hedge. Once that was done, I was free to maintain and hold the position for as long as needed till a breakout did occur. Why was I confident about a breakout? Well ITC has been forming a multi year symmetrical wedge - with Lower Highs, and Higher Lows. Though this has an equal chance to break both sides, at a price point near 200-215 ITC is very fairly priced even for a consolidating market - and given the bullish market sentiment, quite underpriced comparatively. For now I am continuing to trail SL on ITC and for the medium term expect it to make an up move to catch up with the rest of the market. Learnings : 1. Stay away from naked options no matter how attractive they look . Though the rewards on Options looks awesome on paper, it is very very difficult to time a larger move correctly. More often than not, with a reversal you will quickly erode capital. Better avoid them to gain longer term rewards. 2. Always hedge your futures. You can in fact make more returns on a hedged position with twice the buildup, than you could with a naked single position - and you will still spend only half the margin requirement. 3. Be patient with your trades. Many a time we're looking for quick returns, especially if we're new in the market. The trick is to slow things down and look at the bigger picture. Make sure you limit your losses, and ride your winners for long - till they turn around decisively.
NSE:ITCEducation
by libinbond
1
Why Is It Necessary to Bank Gains in Options on a regular basis?In this post, I thought of sharing with you why it is necessary to exit Long Options in certain situations and bank gains. This is based on the trades that i had actually taken and is not a backtest story that I am sharing. HDFC BANK 1580 CE A few days ago , I bought HDFC BANK 1580 CE when the spot was at 1567. The intent was to ride it as long as I can and preferably till it reaches 1600 psycho resistance. The exit basis was based on the premise that I had picked up the trade using a good basis and the price at that time was in the zone. However, man wishes and the market disposes of the plan out the window! I soon realized that the underlying was not having enough strength and it was highly unlikely to cross even 1580, leave aside reaching closer to 1600. HDFC BANK has the tendency to quickly slip a few points and in such a case, my Option would come near cost and I would end up letting the gains evaporate. In view of this, I exited the long in good gains in terms of ROI % which is how I measure my trades as I do not trade with a big size as I have learned those lessons the hard way in the past. I was content with the trade and was expecting that the scrip may retest the area from where it had bounced. And something similar happened and without blinking, I went long on the same Option and interestingly, this time I could get it at a better price by 10 paise. On an HDFC BANK Option, even this small difference could well take care of all the charges so I was happy. And I waited for the price to test the earlier level from where it got rejected and as the scrip approached the level, I simply exited without thinking about a What if it goes beyond the resistance line? My exit was justified and then the scrip rolled down. I was happy that just by observing the price action and not really referring to any indicators, I was able to make 2 good trades. Or should I say - the market was kind enough to grant me these 2 good trades? [n Conclusion: The above highlights the fact that while trading in Options, observing the price of the underlying when in momentum is essential and as soon as the trade is on, the exit plan should be in place. This can be done either by placing an SL order or a target order. I keep these levels in mind and exit as and when either of these are approached. When in a bull market, when a price retraces back to a support area, a good trading opportunity appears as in the case explained above. Taking a re-entry at the same or around the same price level is easier when there is already a profit cushion from the earlier trades so the not only the mental state is stable and positive, but the confidence while pressing key is also at the required level. Please let me know if this helps and if you would like me to share some of my trades with you and I will do so whenever possible. As you can see from the chart, the trades mentioned above were taken a few days ago before HDFC BANK tested lower levels. Happy Money Making! Umesh 18-9-21 Note - I am not a SEBI Regd analyst and the views expressed here are purely for educational and informational purposes only. Please perform Due Diligence at your end before taking any trades as only you know how to manage your money.
NSE:HDFCBANK
by AVENUESOFINVESTMENT
2
How to place a logical stop-loss in Options?In general, a logical stop loss varies from one situation to another. Some of the logical stop losses can be: 1. Swing high/low 2. Low of the Hammer/Inverted hammer 3. High of the Shooting star/Hanging man 4. Low of the demand zone 5. High of the supply zone If you are trading in options, broadly there are 2 ways to set a stop loss. There are: 1. Place the SL using the spot chart 2. Place the SL using the Options chart Explanation: 1. If you place a stop loss using the spot chart, then you don't have to see the Options chart. But you won't be able to calculate exact loss beforehand because the movement of spot vs options is not linear and depends on Option Greeks. This is a simpler method since you just have to see a single chart. Just enter and exit the trade using the spot chart only. 2. If you place the stop loss using the Options chart, you will be able to calculate the exact loss beforehand. For checking the options chart, you will have to use your broker's terminal or use some paid third-party site. Tradingview doesn't provide option charts. This method is a bit difficult as compared to the first method. The steps that you need to follow are: a> Check the spot chart. b> Execute your buy/sell order. c> Notice the logical stop loss in the spot chart d> Check the same SL in the options chart 4. Now open the options chart of the option that you bought/sold. 5. See the relative position of the stop loss in the options chart. (Whatever SL that you selected in the spot chart in step 3, select that same SL but now in options chart.) In the above case, suppose you Shorted Nifty. So, you can either buy a PUT option or sell a CALL option. The stop loss in both cases is as follows: If you buy a PUT option: If you sell a CALL option: 6. Now that you have chosen your stop loss, just place your stop-loss order. That's it, you are done. Read the post a few times and you will be able to understand the process. Don't complicate things. I hope you find this post useful. Also, if anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers!
NSE:NIFTYEducation
by johntradingwick
9
Nifty: Gravestone doji observed after Bad Bank good NEWSNifty - Yesterday there was Press Conference where our Finance Minister came up with the idea of forming of a Bad Bank and buying Rs 2 lakh Cr NPA of PSU banks for Rs 30,000 Cr . - this would clear up all the NPA of PSU Banks and going forward would help in showcasing better ROI . This possible expectation of good news is possibly one of the reasons why we have seen our markets doing well in recent days. - However today on hourly charts we observe gravestone doji pattern - this is a bearish candlestick pattern Is the good NEWS being factored in? I have highlighted this view in the previous update in the comment section Time for you to decide. Do note: last time, in our Nifty update our SL got triggered at 17450 So due your own research and due diligence. 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
NSE:NIFTYShort
by indiamarketoutlook
2
SBIN: Potential Channel tradeSBIN - there was a big positive announcement for PSU Banks yesterday evening by Finance Minister - On charts, we see SBIN trading near channel top levels given the set up, one may consider a Bear Call Spread strategy Sell 480 Call option currently around 8.6 Buy 510 Call option currently around 3.5 Net receivables in strategy Rs 7650/- per lot (yield potential of 11.5% on Margin requirement till 30 Sept expiry) More importantly the strategy has inbuilt loss protection for a rise in stock price up to 485.10 on 30 Sept Take care & safe trading...!!!
NSE:SBINShort
by indiamarketoutlook
6
Hindalco: Chart set up and trading strategyHindalco CMP 486 Potential Line of resistance around expiry comes at 513 levels _____________________________________________________________________________________________________ Given the set up, one may consider to Bear Call spread strategy Sell 510 Call option around 5 & Buy 540 Call Option currently around 1.7 Lot size 2150 Net receivables 3.3 * 2150 = Rs 7095 Yield potential of approximately 8% on margin requirement Importantly strategy has in built loss protection for a rise in stock price up to 513.30 till expiry 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
NSE:HINDALCOShort
by indiamarketoutlook