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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 a Limited Risk Options Strategy in HCLTECH for October 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 behaviour. So spend some time to learn the strategy first.
If you are looking for some Mentorship for these limited risk options strategies like Iron Condor Options Strategy with proper adjustments, must click on below button.
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 730 and made a high of 849.90. Now we can see, HCLTECH is trading in a range. So it can be a good candidate for our limited risk options strategy.
Based on the chart, 760 – 880 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 860 – 900 is acting as an immediate resistance zone and 760 – 740 is acting as an immediate support zone. Max pain is at 800, indication expiry level.
This is confirmed with Open interest that 760 – 880 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 (752 – 888) 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.
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 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.
