Chart set up - Stock is trading in an up trend channel since Aug 2023 - 21 day EMA around 550 - midline of the channel around 550 - currently trading at upper end of the channel
Trading strategy Short Strangle strategy Example of Short strangle Sell 605 Call option and Sell 545 Put option
Understanding Risk :: Reward Net receivables in strategy 9.2
Max profit potential Rs 15180 (approx 8% on Margin)
Loss if 30 Nov closing below 535.8 / above 614.2
Any close in between would be profitable
Disclaimer -The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - Use this for educational purpose - Any decision you take, you need to take responsibility for the same - It's your hard earned money. Treat it wisely - Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance - if trading in F&O, understand that F&O trading involves risk - Do take proper risk management measures - Do your own analysis and consult your financial adviser if need be