Hey Folks! I hope you are doing well. Through this blog, I try to share some option strategies to earn together. Today I’m sharing a “best Option strategy for sideways Trend in TATASTEEL” for the December Expiry. Read this post till the end to know the strategy and adjustments.
If we talk about the best Option strategy for sideways Trend, the first strategy that comes to mind is the Iron Condor Options Strategy. I love the strategy because it helps manage risk while trading passively.
Another strong reason to recommend this strategy is: If you are a beginner and wanted to start option hedging strategies, then instead of learning various strategies, you must understand the behaviors or option pricing in terms of price movement and time (theta decay).
And this strategy alone is enough to understand the behavior of option pricing due to its delta-neutral behavior. So if you are just starting this strategy should be your first strategy to try.
The same advice I always give to my Mentorship Students. Because understanding the behavior of option pricing is the most important thing while creating these Option strategy for sideways Trend.
I have written a detailed article where I share what an “iron condor” strategy is and how one can use it.
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 learning the strategy first.
If you are looking for some mentoring for these limited risk options strategies like the Iron Condor Options Strategy with proper adjustments, you must click on the below button.
Option strategy for sideways Trend in TATASTEEL
The first step to launching a Best Option strategy for sideways Trend is that you have to find a stock that is trading in a range. Let us look at the chart and analyze option chain data to find the range for TATASTEEL.
If you look at the chart, you can clearly see that TATASTEEL is trading in a range of 95 to 110. We need that type of stock only for the Best Option strategy for sideways Trend. Based on the chart, 955 is acting as a strong support level and 110 is acting as a resistance level for coming sessions.
Now let us look at the open interest data to confirm this range.
Open Interest analysis of TATASTEEL
Based on the open interest chart, we can see that 100 is acting as an immediate resistance zone and 110 is acting as an immediate support zone. An indication of expiry level, max pain is at 105.
This is confirmed with open interest that 100 to 110 can be the range in TATASTEEL for the coming sessions. So, we can use this range to make the Option strategy for sideways Trend.
Best Option strategy for sideways Trend in TATASTEEL
Possible adjustments for this Options Strategy
This strategy requires some adjustments if it breaks even. To get these adjustments in real time, you can join our premium Telegram Channel.
I hope my articles are helping to trade with these options strategies. Which strategy are you using to generate your monthly paycheck? Do let me know in the comment box.
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DISCLAIMER: We do not work as SEBI research analysts. Views and the options strategy are provided for educational purposes only. There is no liability for any loss caused by the use of this article or its contents. This product is not a buy or sell recommendation, but rather a guideline for interpreting specific analysis methods. This information should only be used by investors and traders who are aware of the risks associated with trading securities.