Relinace Industries: Moving as per plan
Aggiornato
Reliance Industries
On 25 Nov, this is the chart that was envisioned...
https://in.tradingview.com/chart/RELIANCE/113TAKro-Reliance-Chart-set-up-medium-term-view/
The stock movement has so far been on expected lines and now we see Reliance around 2280 odd levels today...
2260-2280 acted as Resistance in June 2021. Would previous Resistance of June 2021 now act as Support...?
200 day EMA at 2277 coinciding with important Support levels
Given the set up, one may consider to sell 27 Jan 2022 expiry
2200 Put option currently around 45
Note: I am comfortable buying the stock at current levels but given the overall market sentiment, I'm going for this strategy.
The implication of this strategy is I'm buying at 2155 even when the stock is trading at 2280 odd levels.
Now since this is a leverage product it gives me a max reward potential of approximately 11.5% in case the view is right; at the same time the strategy has an in built loss protection for a fall up to 2155 odd levels. In case the stock falls further, I would be ready to take delivery of the stock at further discount.
Trust you find the insight helpful.
Plan your trade accordingly assessing your risk appetite...
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
On 25 Nov, this is the chart that was envisioned...
https://in.tradingview.com/chart/RELIANCE/113TAKro-Reliance-Chart-set-up-medium-term-view/
The stock movement has so far been on expected lines and now we see Reliance around 2280 odd levels today...
2260-2280 acted as Resistance in June 2021. Would previous Resistance of June 2021 now act as Support...?
200 day EMA at 2277 coinciding with important Support levels
Given the set up, one may consider to sell 27 Jan 2022 expiry
2200 Put option currently around 45
Note: I am comfortable buying the stock at current levels but given the overall market sentiment, I'm going for this strategy.
The implication of this strategy is I'm buying at 2155 even when the stock is trading at 2280 odd levels.
Now since this is a leverage product it gives me a max reward potential of approximately 11.5% in case the view is right; at the same time the strategy has an in built loss protection for a fall up to 2155 odd levels. In case the stock falls further, I would be ready to take delivery of the stock at further discount.
Trust you find the insight helpful.
Plan your trade accordingly assessing your risk appetite...
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
Trade chiuso: obiettivo raggiunto
Reliance moves on expected lines....
27 Jan expiry 2200 Put option update
Recommended selling around 45. It gave ample opportunity.
Now trading around 15. Profit booking can be considered.
Happy trading...!!! 🙂
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