Part 2 How to Draw Accurate Support and Resistance LevelsParticipants in Option Trading
There are four primary participants in the options market:
Buyer of Call Option (Long Call) – Expects the price to rise.
Seller of Call Option (Short Call) – Expects the price to fall or remain flat.
Buyer of Put Option (Long Put) – Expects the price to fall.
Seller of Put Option (Short Put) – Expects the price to rise or remain flat.
Each participant has a specific risk-reward profile. Option buyers have limited risk (the premium paid) and unlimited profit potential. Option sellers, on the other hand, have limited profit (premium received) but potentially unlimited risk.
Resistancebecomesupport
ASHOKLEYLAND - Example of history repeats!Overview & Observation:
1. Beautiful clean breakouts.
2. Broke multiyear resistance level.
3. Earnings are strong.
4. Expecting a minor consolidation and further upmove
Trade Plan:
1. Keep it on radar, and track it closely.
- Stay tuned for further insights, updates and trade safely!
- If you liked the analysis, don't forget to leave a comment and boost the post. Happy trading!
Disclaimer: This is NOT a buy/sell recommendation. This post is meant for learning purposes only. Please, do your due diligence before investing.
Thanks & Regards,
Anubrata Ray
A good swing trade opportunityprice can give a good bounce back from here, anticipating a trend reversal from the current market price R:R(Risk:Reward)= 1:2
A good trader never predicts a move in stock market because nobody can predict the market. A good trader anticipate a move through his technical and fundamental analysis . And there is no 100% sure trade, there is always risk involved. Don't forget "Risk hai toh ishq hai ! "
And please like and follow, if you like my analysis.
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TECH MAHINDRA MAY BREAKOUT OF THE RESISTANCE SOON!!Tech Mahindra , one of the IT giants , may move up soon and break the resistance level. It has retested the resistance or the supply zone multiple times, now when there is a breakout of this zone and if it is supported by big volumes , one may go long . Also, we find a bullish marubozu candle near the supply zone which indicates that buyers are strong , but one should wait for volume confirmation and then take position . The most conservative target would be 1109 level.










