Best Bear Call Ratio Spread in Dabur for December Expiry

Best Bear Call Ratio Spread in Dabur for December Expiry

Hey Folks! I hope you are doing well. Through this blog, I try to share some option strategies to earn together. Today I’m sharing a “Bear Call Ratio Spread in Dabur” for the December Expiry. Read this post till the end to know the strategy and adjustments.

Before we jump to our strategy, let us learn what is a bear call ratio spread option strategy.

The bear call ratio spread is a bearish option strategy. It’s good to deploy when you are expecting a sideways movement with a bearish view.

In Bear Call Ratio Spread, we keep legs in ratios. This means 2 short legs against one buy leg i.e 1:2. You can keep in 2:3, 3:4, and so on…

The logic behind developing this strategy is as follows:

  • You are expecting the price to remain below a certain level (resistance zone)
  • Or expecting to price to go down from a certain level.

For example, you are expecting that SBIN may go down but will not go above 450. Then only you should initiate this strategy while keeping breakeven above 450.

Always remember: before you deploy this strategy, there are a few things you should keep in mind:

  • It’s an unlimited risk strategy. So don’t trade if you don’t know how to adjust your position.
  • This strategy required a high margin, so don’t trade if you have a low margin.
  • It required continuous monitoring, so if you can’t track properly, avoid this strategy.
  • Last but not the least, don’t just trade this single strategy. make a basket with other strategies and diversify your capital in different strategies.

This strategy can give you a handsome return every month if you know how to manage it properly.

So, before you deploy this strategy in a live account, you should have a proper understanding of this strategy and its behavior. So, spend some time learning the strategy first.

If you are looking for some mentoring for these monthly income-generating options strategies like the Bear Call Ratio Spread option strategy with proper entry/exit and adjustments, you must enroll in our Mentorship Program.

Bear Call Ratio Spread in Dabur

The first step to launching a Best Bear Call Ratio Spread is that you have to find a stock that is trading with a bearish view. Let us look at the chart and analyze option chain data to find the range for DABUR.

DABUR Chart analysis

If you look at the chart, you can clearly see that DABUR is facing resistance around 600. We need that type of stock only for the Best Bear Call Ration Spread.

Based on the chart, 600 is acting as a strong resistance level and we can expect DABUR to remain below 600 until we see a breakout from 600.

Now let us look at the open interest data to confirm this range.

Open Interest analysis of DABUR

Dabur open Interest - Bear Call Ration Spread in Dabur

Based on the open interest chart, we can see that 600 is acting as an immediate resistance zone.

This is confirmed with open interest that 600 is the important level and DABUR will remain below until there is no breakout in the coming sessions. So, we can use this range to make the Bear Call Ratio Spread in Dabur.

Best Bear Call Ratio Spread in Dabur

Possible adjustments for this Options Strategy

This strategy requires some adjustments if it breakeven i.e above 600. To get these adjustments in real time, you can join our premium Telegram Channel.

I hope my articles are helping to trade with these options strategies. Which strategy are you using to generate your monthly paycheck? Do let me know in the comment box.

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DISCLAIMER: We do not work as SEBI research analysts. Views and the options strategy are provided for educational purposes only. There is no liability for any loss caused by the use of this article or its contents. This product is not a buy or sell recommendation, but rather a guideline for interpreting specific analysis methods. This information should only be used by investors and traders who are aware of the risks associated with trading securities.

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