Hey Folks! I hope you are doing good. Today I’m sharing a Best Monthly Income Strategy in DIVISLAB for February 2021 monthly expiry. I’m sharing the adjustments, too, so read the post till the end.
As we know, Iron condor is the Best Monthly Income Strategy with limited risk. This strategy works well in a range-bound script. Any liquid stock that is trading in a range can be the candidate for an Iron Condor Options strategy.
There are a few more parameters one should follow before initiating this strategy in your account. I have written a deep 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.
If you are looking for some Mentorship for the Best Monthly Income Strategy with limited risk, proper adjustments must click on the below button.
Best Monthly Income Strategy in DIVISLAB
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 good rally, We can see that DIVISLAB faces resistance from its strong resistance zone, i.e., 38000 -4000. A new rally will only come once we got a breakout from the 3800 – 4000 zone.
On the downside, you can see that 3300 – 3000 is acting as the strong support zone and a new downside movement will only continue after a sustainable breakdown from this zone.
We need that type of stock only for the best monthly income strategy. Based on the chart, 3200 – 3000 is acting as a strong support zone, and 3800 – 4000 is acting as a resistance level for coming sessions.
So based on this range (3200 – 3800), we can select our strikes. Let us look at the option chain data to confirm this range.
Open Interest analysis of DIVISLAB
Based on the Open interest chart, we can see that 4000 is acting as an immediate resistance level, carries the highest open interest on the call side. and 3300 – 3200 is acting as an immediate support zone. Max pain is at 3400, indicating expiry level.
This is confirmed with Open interest that 3200 – 3800 can be the range in DIVISLAB for the coming sessions. So we can use this range to make the Iron Condor Options strategy (best monthly income strategy).
Best monthly income strategy in DIVISLAB
Possible adjustments for this best Options strategy
You can follow the below adjustments for this Iron Condor options strategy.
- First, you can follow these breakevens (3140 – 3850) 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 7000₹, close this strategy.
- You can shift your PUT Spread to higher levels and make it an iron butterfly after a successful breakout from 4000. You can do the same with Call Spread i.e. shift your Call spread to lower levels after a sustainable breakdown from 3000.
If you want to learn these option strategies with proper adjustments you can enroll in our Option Strategies – A Mentorship program.
I hope my articles are helping to trade with these options strategies. Which strategy you are using to generate your pay-check? Do let me know in the comment box.
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Options Strategies – A Mentorship Program
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DISCLAIMER: – we are not a SEBI research analyst. Views and the best monthly income 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.