Relcapital Bull Strategy-March Series

Hello Friends...!!

Relcapital is trading bullish with a gain of around 14% so far in this expiry. After sudden jump, it is seeing consolidation at higher levels. To play the next up move we can go with Ratio Spread Strategy:

View: The stock is likely to settle in the range of 620-680 in this expiry.


Action:

Buy 1 lot 620 Call@4.7
Sell 2 lots 640 Call@2.6

Total Premium Received: 0.5(750/- per strategy)

Lower Breakeven Point: 619.5
Upper Breakeven Point: 680.5

Profit Range-619.5-680.5
Max Profit if settles at 640: 20.5(30700/- per strategy)

Risk: Above 680.50, Unlimited(14% away from today's close of 594.4)

Hence the strategy will generate loss only if the stock goes above 680.50 levels else there would be profit ranging from 0.5 to 20.5 points.

IDEA Merger News- A Tectical Option Strategy March Series

Hello Friends

IDEA had been in the news since last so many days, due to which the stock is trading with higher volatility. Lets utlize this as opportunity.

CMP-100

View: If we sell 75 put & 125 Call that is 25% far away either side. We have total 9 trading sessions left for Expiry hence moving beyond the broader range of 75-125 looks unfeasible.

Action:

Sell 1 lot March 75 Put@0.5
Sell 1 lot March 125 Call@0.5

Total Premium Inflow: 1*7000=7000/-

Total Investment(assuming 25% margin blocked)- 3.5L

A good Risk-Reward Trade.

Post UP Election Results Trade Setup

Hello Friends..!!


Markets are now hovering in a range & waiting for the next event of election results.

View: Post result if BJP comes or not with majority in UP will be key driver for the markets. A volatile move of 300 points is expected in either direction depending on the results. To play the volatile move, I recommend the following LONG STRANGLE strategy.

Action:

Buy 8600 March Put@22
Buy 9300 March Call@18

Total Premium Paid(Max Risk): 40
Reward: Theoretically unlimited.

For Traders: Keep Stop Loss of 10 & can expect target of 80-120 on total premium paid.

Any directional move of 200+ points will start generating good profits in this strategy.