Hey Folks! I hope you are doing good. Through this blog, I try to share some options strategies so that we can earn together. Today I’m sharing an Iron Condor Options Strategy in AXISBANK for May 2023 Expiry. Read this post till the end to know the strategy and adjustments.
Before we jump to our strategy, let us understand what an Iron Condor Options Strategy is first. I have written a detailed article with an example for those who want to learn this Iron Condor options strategy.
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.
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Iron Condor Option Strategy in AXISBANK
The first step to initiate an iron condor option strategy is to find the range of that particular stock. Let us look at the chart and analyze option chain data to find the range for coming sessions.
After a sharp decline, we can see some recoevry from lower levels in AXISBANK and now it is trading in a range. We need that type of stock only for the Iron Condor options strategy. Now based on the chart, 840 is acting as a strong support level and 890 is acting as a resistance level for coming sessions.
So based on this range (840 – 890), we can select our strikes based on the above range and Open interest data. Let us look at the option chain data to confirm this range.
Open Interest analysis of AXISBANK
Based on the Open interest chart, we can see that 890 – 900 is acting as an immediate resistance zone and 830 -840 is acting as an immediate support zone. Max pain is at 860, an indication of expiry level.
This is confirmed with Open interest that 840 – 890 can be the range in AXISBANK for the coming sessions. So, we can use this range to make the Iron Condor Options strategy.
Iron Condor Options Strategy in AXISBANK
Adjustments for this Options strategy
You can follow the below adjustments for this Iron Condor options strategy.
- First, you can follow these breakeven (840- 900) as a stop-loss means you can close your strategy after a breakout or breakdown from this range.
- Or If the loss is more than 10000₹ (1lot), close this strategy.
- You can shift your PUT Spread to higher levels and make it an iron butterfly after a successful breakout from 900. You can do the same with Call Spread i.e. shift your Call spread to lower levels after a sustainable breakdown from 840.
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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 are not a SEBI research analyst. Views and the options strategy posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this article or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.