Hey Folks! I hope you are safe and healthy in this COVID-19 pandemic. Every week I’m trying to share one strategy so that we can earn together. Today I’m sharing the best Options Strategy with limited risk in JSWSTEEL for January Expiry. Read this post till the end to know the strategy and adjustments.
Before we jump to our strategy, let us understand a few things about this best Options Strategy with limited risk (Iron Condor Options strategy) first.
As we know, Iron condor is the best options strategy with limited risk. This strategy works well in a range-bound script. So 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 behaviour. So spend some time to learn the strategy first.
If you are looking for some Mentorship for this best options strategy with limited risk, proper adjustments must click on the below button.
Iron Condor (Best Option Strategy) in JSWSTEEL
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 JSWSTEEL is trading near to its strong resistance zone. A new rally will only come once we got a breakout from 420 – 430 zone.
We need that type of stock only for the Iron Condor options strategy (best options strategy). Now based on the chart, 370 – 360 is acting as a strong support zone and 420 – 430 is acting as a resistance level for coming sessions.
So based on this range (370 – 420), we can select our strikes. Let us look at the option chain data to confirm this range.
Open Interest analysis of JSWSTEEL
Based on the Open interest chart, we can see that 420 is acting as an immediate resistance level, carries the highest open interest on the call side. and 370 – 360 is acting as an immediate support zone. Max pain is at 400, indicating expiry level.
This is confirmed with Open interest that 370 to 420 can be the range in JSWSTEEL for the coming sessions. So we can use this range to make the Iron Condor Options strategy (best options strategy).
Iron Condor Options Strategy in JSWSTEEL
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 (365 & 435) 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 6000₹, close this strategy.
- You can shift your PUT Spread to higher levels and make it an iron butterfly after a successful breakout from 440. You can do the same with Call Spread i.e. shift your Call spread to lower levels after a sustainable breakdown from 360.
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
On the 1st of September 2019, We have launched a new mentorship program for Option strategies, in which we are discussing how can we deploy these strategies? What rules we should follow before taking a trade? and what should be our adjustments if the script is moving against your direction?
DISCLAIMER: – we are not a SEBI research analyst. Views and the best 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.