A Bullish Bet on M&M: My Bull Put Spread Strategy for December 2024

In this post, I'll delve into a specific options trading strategy I've employed to capitalize on my bullish outlook for Mahindra & Mahindra (M&M) stock. We'll explore the Bull Put Spread strategy, a limited-risk, limited-profit approach that aligns perfectly with my positive sentiment on M&M's future trajectory.

I'll break down the strategy step-by-step, providing insights into the underlying logic, risk management techniques, and potential rewards. Whether you're a seasoned options trader or a curious investor, this post offers valuable knowledge to help you navigate the complexities of options trading.

Let's dive in and uncover the potential of this strategy for the December 2024 expiry.

Bull Put Spread Strategy in M&M

Before we move to the strategy, let us look at the reasons I have chosen this Bull Put spread strategy in M&M. Start with the chart first.

If you look at the chart, you can see the trend is UP and M&M is making higher lows after it took support near 2700 levels.

Resistance is around 3200 and a breakout from this level will trigger further upside levels in M&M.

Let's look at the Open Interest Data also.

When I write this post, we can see people have sold decent puts near 3000 & 2900 levels. Although we can see that people have sold calls also because the overall trend is UP, we can create a credit strategy while keeping 2900 as a stoploss level.

So here Bull Put spread Option Strategy fulfils both the requirements.

• It offers uncapped profit on the upside.
• It has a limited risk on the downside.

That's the reason I chose the Bull Put Spread strategy in M&M for the December 2024 expiry.

Bull Put Spread Strategy in M&M for December 2024 Expiry

Below is the Bull Put Spread Strategy in M&M that you can deploy for the December 2024 Expiry.

Here I have sold 2900 PE and Bought 2800 PE and targeting a profit of 5-6% this month.

I'm also keeping a stoploss of ?10000 (5 lots) as MTM loss and 2900 and a Stoploss level for this expiry.

We will make some adjustments also if required, that I will share with my premium group.

I have also created a limited risk option strategy in KOTAKBANK for the December 2024 Expiry.

I have shared the complete strategy in our TradePik's Premium Channel. You join through the below link to get the complete strategy along with real-time adjustments for these limited-risk option strategies.

• Here is the link: TradePik's Premium Positional Strategies

Conclusion

In conclusion, the Bull Put Spread strategy offers a strategic approach to capitalize on bullish sentiments towards M&M stock while managing risk effectively. By understanding the mechanics of this strategy and carefully selecting the appropriate strike prices and expiration dates, traders can position themselves to potentially profit from upward price movements.

However, it's crucial to remember that options trading involves inherent risks. Market volatility, unexpected events, and changes in underlying asset prices can significantly impact the outcome of any strategy. Therefore, thorough research, risk assessment, and a solid understanding of options trading principles are essential.

Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. The information provided here is based on personal opinion and analysis, and it's important to conduct your own research or consult with a qualified financial advisor before making any investment decisions.

Past performance is not indicative of future results. Options trading involves significant risk, and it's possible to lose more than your initial investment.