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Hello guys, I hope you enjoyed a lot in the festive session. Now the festive session is over and we are back to our work. In my previous posts, I shared some strategies in Stocks like Iron Condor in SBI and Bull Call Ladder in ITC. Today I’m sharing Bull Call Ladder option strategy in ZEEL.
In today’s post, we’ll discuss why I choose ZEEL for today’s strategy,? Why I’m calculating the range and why I’m selecting that particular strategy in ZEEL?
Before we go further, I just wanted to tell one thing. In options trading, Strategy selection is important. Before selecting a strategy you should be aware of the limitations of that particular strategy.
You should keep in mind that How will you manage your trade? Because everything depends upon your trade management. Profit and loss will come based on management.
Like if we both deploy the same strategy but if your management is good compared to me, you will get a better return. So before initiating a trade, every plan should be clear in your mind.
Every plan means Your entry rules, your exit rules and what should be your adjustments if the script starts moving against your predictions.
You can manage your trade well only if you know how to adjust your trade if the script starts moving against your predictions. So calculate every possible scenario you can get after entre in that particular trade and based on that you should choose a strategy to deploy.
Now lets come to our Bull Call Ladder Option Strategy in ZEEL. Before going further let us understand its levels based on charts.
Bull Call Ladder Option Strategy in ZEEL
If you look at the chart, You will find that after giving a good upside movement on 31st October and 01st November, Zeel is trying to take some halt around 300.
300 is a very good resistance level based on technicals too. Previously 300 was acting as the strong support which has become a resistance after a breakdown on September 23rd.
Now 300 – 320 is a crucial resistance zone and we can expect some more upside levels only after a successful breakout from this zone.
ZEEL Open Interest Analysis
Based on option chain data, you can see the highest open interest stands at 300 Call Option with 0.34 PCR value, which indicates a strong resistance level.
Highest Open interest in Put option stands at 250 indicates a strong support level for this expiry. Now as per current Option data we have a range of 250 to 300 for this expiry.
Now based on this range we are selecting our Bull Call Ladder option strategy in ZEEL.
Bull Call Ladder option strategy is ZEEL
- Buy 300 Call Option ( 1 lot)
- Sell 310 Call Option (1 Lot)
- Sell 320 Call Option (1 Lot)
If you look at the pay off chart, You will find that our risk is unlimited beyond our breakeven 341 but the loss will start once ZEEL crosses 320, so to convert our risk from unlimited to limited just buy a call option one strike above the second sold strike ie 320 once ZEEL cross 320 and convert it into Long condor.
Now our new position after adjustments will be 300 CE Long, 310 CE & 320 CE Short and 330 CE long. You can do further adjustments in this long condor strategy. To learn these adjustments, you can enrol to our Option Strategies – A Mentorship Program
Reason to choose this Bull Call Ladder Strategy
You can see that ZEEL is trading around 300 which is our strong resistance level. Now from here, there are three possibilities either ZEEL will go down or Zeel will come down again or it will consolidate.
You can see that probability to go up is less, so I’m keeping a strategy which is good for Consolidation or for a downside movement. As you can see we are net credit around 14000₹, So it will be our net profit if ZEEL consolidates or give us a downside movement.
For Upside movement we can do the adjustments and keep our position hold.
Important Note: It’s an unlimited risk strategy, do not initiate if you don’t know how to manage your trade.
I hope my articles are helping in your profitable trading. If you have any feedback or suggestions please type in the comment box. Your feedback will help me to do something best in future.
Please type your queries related to Bull Call Ladder option strategy in ZEEL in the comment box. I wish you profitable trading.
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Options Strategies – A Mentorship Program
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DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product 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.