Primary: Bullish, Monthly Engulfing Candle
Secondary: Bullish, Weekly 3 horses candlestick pattern
19850 has strong resistance but the trend is positive, which creates a opportunity to put Monthly Strangle, which could give 4-5% returns by mid December.
Today the price has broken the support zone and Fib retracement level of 38.20%. Also, there is a good convergence in ema bands. The price could show the volatility of 5 to 6% in this range of Fib retracement levels of 330 to 315. On the breakdown of this range we got a clear short trade of 5 to 6%. If anybody wants to trade this range then the short strangle...
Please provide your feedback on this trade idea, how does it look ?
After a good rally on Friday, it may be possible that Index may take a halt and go into some consolidation for next few session. This may provide a good opportunity to deploy some a strangle and one can also add hedges on both side to make it Iron condor.
This post is just for learning purpose...
The stock is under accumulation for the past few months.The chart is self explanatory.Read the details given in the chart for a thorough knowledge.
Option sellers can use this script by doing strangle or straddle with break-even falling between 885-999 preferably.
This post is for educational purpose only.
LONG STRANGLE OPTION TRADE STRATEGY
AUGUST 2ND WEEKLY CONTRACT
BUY 27400 PE @35
BUY 27900 CE @35
MINIMUM BREAKEVEN PRICE IS 70
QTY BUY CALL@480
QTY BUY PUT @480
I am entering into a long strangle.
This is an option strategy,
which is non-directional.
CMP - 97.6
Buying - 95 Put - @5.95
Buying - 100 Call - @5.35
Total Buying Cost - 11.30
I'll explain in detail in the comments after market hours.