Hey Folks! I hope you are safe and healthy. Every month I’m trying to share few strategies so that we can earn together. Today I’m sharing a Limited Risk Options Strategy in HCLTECH for October, 2023 Expiry. Read this post till the end to know the strategy and adjustments.
Before we jump to our strategy, Let us understand few things about Limited Risk Options Strategy (Iron Condor Options strategy) first.
As we know best limited risk options strategy is Iron Condor Options Strategy. This strategy works well in a range-bound script. So any liquid stock that is trading in a range, can be the candidate for a limited risk 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 limited risk 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 to learn the strategy first.
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Limited Risk Options Strategy in HCLTECH
Now our first step to find a range based on the chart. Let us look at the chart of HCLTECH first.
HCLTECH gave a breakout from 1200 and made a high of 1311.30. Now we can see, HCLTECH is trading in a range near 1253. So it can be a good candidate for our limited risk options strategy.
Based on the chart, 1200 - 1300 is the range we can expect in HCLTECH in the coming sessions. Let us look at the Open Interest to find the range OI is giving. Based on both the data, we can choose a range for our Options strategy.
Open Interest analysis of HCLTECH
Based on the Open interest chart, we can see that 1300 is acting as an immediate resistance and 1200 is acting as an immediate support. Max pain is at 12500, indication expiry level.
This is confirmed with Open interest that 1200 - 1300 can be the range in HCLTECH for the coming sessions. So we can use this range to make a Limited risk Option strategy i.e. Iron condor options strategy.
Limited Risk Options Strategy in HCLTECH
Possible adjustments for this Options strategy
You can follow the below adjustments for this Iron Condor options strategy.
- First, you can follow these breakevens (1187 & 1311) 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₹ (1 lot), close this strategy.
We will do some more advanced adjustments like reverse buying and shift spread if there is any breakout or breakdown from breakevens.
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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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DISCLAIMER: – we are not a SEBI research analyst. Views and the 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.