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Hello folks! Hope you are safe and healthy in this COVID-19 pandemic. On our website, I’m sharing some good options strategies, so that all can make money together. Today I’, sharing an Iron condor strategy in ADANI PORTS.
Iron condor strategy is a limited risk option strategy to get the benefits of a range-bound activity in the stock.
I have shared a detailed article about how to deploy an Iron condor strategy in any stock. You can go through that article for better understanding.
I’m dividing this article in 2 sections. In first section I will answer why I choose AdaniPorts for this Iron Condor Strategy. We will find a range based on the chart and the Open Interest data.
In the second section, I will share the strategy with its adjustments. So read this post till end to understand better. If you have any query, question or suggestion, can type in the comment box.
Iron Condor Options strategy in ADANIPORTS
Let’s start with the first section. The first and the main criteria to choose an iron condor strategy is that Stock should be in a range. To understand this lets look at the ADANIPORTS chart.
After a good rally, we can see ADANIPORTS is trading in a range of 380 – 340. We can expect further levels only after a successful breakout or a breakdown.
So based on the first criteria, ADANIPORTS looks good for an iron condor strategy. Now to confirm this range, we can analyze open interest data of September Expiry.
Open Interest analysis for the Iron Condor strategy in ADANIPORTS
Based on the Open interest chart, we can see that 370 – 380 is acting as an immediate resistance zone and 330 – 320 is acting as an immediate support zone. Max pain is at 350 indication expiry level.
This is confirmed with Open interest that 380- 330 can be the range in ADANIPORTS for the coming sessions. So we can use this range to make an Iron Condor strategy.
Iron Condor strategy in ADANIPORTS
Possible adjustments for the Iron Condor strategy
You can follow these adjustments:
First, you can follow these breakevens (325.60 – 384.40) as a stop-loss means you can close your strategy after a breakout or breakdown from this range.
If the loss is more than 5000₹, close this strategy.
Shift your call spread to 350 after a breakdown from 325. Means book profit in existing call spread and initiate a new call spread with 350 CE SELL and 360 CE BUY.
Same thing you can do with PUT spread after a successful breakout from 385. Means shift your put spread to 360 i.e short 360 PE & BUY 350 PE
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.
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 iron condor 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.