Tata Steel: Channel trade potential for September series

Actualizado
Tata Steel

- We observe Tata Steel trading in blue channel from 03 May to mid July

- currently it is trading in mirror image red channel

- RSI is between 40-60

Tata Steel could likely be revolving in the red channel for September month

For Cash buying any dips towards 1245-1260 may be considered as good entry level
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Given the set up, F&O strategy suggested for Tata Steel: Short Strangle

It involves selling both Call and Put option simultaneously

Sell 30 September expiry 1500 Call option

Sell 30 September expiry 1260 Put option

Combined Premium receivable approximately 42

Max profit potential in strategy Rs 35700/- per lot (11% yield potential)

Loss in strategy, if Tata Steel closes above 1542 or below 1218 on 30 September

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

Operación activa
imagen

1500 Call Option CMP 37

1260 Put Option CMP 8.50

Short strangle Trade is active

Net receivables 45.50
Lot size 850
Nota
Tata Steel Short Strangle Strategy update

1500 Call option 31.60 (sold at 37)

1260 Put option 4.5 (sold at 8.5)

Net profit 850*(45.5 - 36.1) = Rs 7990/- per lot so far

Enjoy your week end...!!! ☺
Nota
imagen

Tata Steel respecting the channel

We booked out from this Short strangle strategy with a 17 point profit per lot despite the volatile movement where we saw both up and down movement...

We do have a modified position where our risk is now covered for a fall up to 1121 on the downside and 1379 on the upside

Take care & safe trading...!!!
futuresNIFTYoptionsParallel ChanneltatasteeltradingviewTrend Analysis

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