Monthly Income Options Strategy in TITAN for September 2024

Options Trading is a highly rewarded game if you know how to do it in a right way. In today's article, I will share one of the best and most simple monthly income strategy in TITAN for the September 2024 expiry.

The strategy I will share in this article is purely hedged with a limited risk. This means if TITAN moves against our prediction, we will lose a nominal amount. We can reduce the risk further through some adjustments that I will share later in this article.

Whether you are a beginner or an advanced trader this strategy works for both. So without wasting you much time, lets move to our next section where I will share the Monthly Income Options Strategy in TITAN for September 2024.

Monthly Income Options Strategy in TITAN for September 2024

For TITAN, we use the Iron Butterfly options strategy this month. If you don't know what is an Iron Butterfly Options Strategy. I have written a detailed article for it.

• You can check here: Best Iron Butterfly Options Strategy in BHARTIARTL

But why you should choose Iron Butterfly as a monthly income options strategy in TITAN this month?

To understand this let's look at the chart and Open Interest data.

Monthly Income Options Strategy in TITAN for September 2024

As you know before deploying any options strategy, we have to do some research for stock selection.

There are many criteria for stock selection that we teach in our "Option Strategies: A Mentorship Program".

I'm not going deep into this now. But let's find out why we chose TITAN for our monthly income options strategy (iron butterfly) for September 2024 month.

Chart and Open Interest Analysis for TITAN

For the Iron Butterfly Option strategy, we need a stock that is trading in a range and where volatility is high.

Tip: High volatility brings high premium that reduces our over all risk and increase our overall return. Because, (Max loss = Spread - Net creadit receive) spread is same and high premium received as creadit means low risk.

Let us look at the TITAN chart first:

If you look at the chart, you will find that TITAN is trying to give a breakout from its previous resistance level i.e. 3600 with decent volumes. But major resistance is near 3800 - 3900 zone. A breakout from its strong resistance zone will trigger further upside levels.

So based on the chart, we may expect some consolidation near 3800 - 3900. Now let's look at the Open Interest data to analyse further.

Open Interest Analysis of TITAN

Now to analyse further, if you look at the Open Interest data, you will find that despite upside movement in TITAN on September 05, 2024, you can see a huge OI edition at 3800. That means people are expecting that TITAN will not break 3800 levels.

So based on open interest data, you can expect some range-bound activity in the coming sessions until people are not shifting their positions from 3800 to higher levels.

After analysing the chart and OI data, we can expect a range of 3600-3800 in the near term. We can use this range to create an Iron Butterfly Option strategy for the September 2024 expiry.

Iron Butterfly Options Strategy in TITAN for September 2024

Here is the Iron Butterfly Options Strategy for TITAN:

I teach these strategies and adjustments in my Mentorship Program. You can follow the below button to join the Mentorship program.

Adjustments for Monthly Income Strategy

As you know every strategy has certain risks if the script moves beyond your breakeven points.

Here in the above iron butterfly strategy, we are keeping 3600 & 3800 as our stoploss levels. This means we will square off or adjust this strategy if this strategy breaches our stoploss levels.

Adjustments can be many but some of the effective adjustments are:

• Shift your PUT spread to high levels if TITAN gives a breakout from 3800. Here you can see 3800 PE & Buy 3860 PE.
• Same thing you can do with CALL spread if TITAN is going down from 3600.

I will share the latest adjustments with my premium subscribers. You can subscribe by click on the below button:

Always remember: In trading, not every move results in profits. Share insights from a trade that didn't go as planned, emphasizing the importance of disciplined risk management.

Conclusion

In conclusion, the Iron Butterfly options strategy presents an exciting opportunity for Indian option traders, particularly when dealing with a stock like TITAN for the September 2024 Expiry. This strategy's versatility, coupled with a thorough understanding of the stock's dynamics, can help you navigate the world of options trading effectively.

If you're eager to learn more and dive deeper into options trading, consider joining our "Options Strategies: A Mentorship Program" on TradePik. We offer comprehensive guidance to novice and experienced traders alike. Feel free to explore more resources on our platform and reach out if you have any questions.

Happy trading!