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Apollo Hospitals @2110 - Target 2400 and stop loss of Rs. 22Apollo Hospitals has approached it's multi year trend line negating covid turbulence from April to July. Historically, for Apollo Hospitals RSI has been a critical indicator suggesting whether to expect the trend line to be a Support or resistance. After the quarterly result blues are over, RSI indicates that stock is ready to approach and cross the multi year trend line if it holds above 2110 on closing basis. Very small stop loss can fetch 300 Rs upside in quick time. Good candidate for call buying also given recent down trend call pricing would be cheap.
NSE:APOLLOHOSPLong
by Pattern_Study
Bajaj Auto - Critical Decision Level @3100Bajaj Auto has been following a clear trend line with topside resistance. A parallel trend line with bottom matching makes it a 339 point channel. Ignoring the covid impact from April to July the stock has been properly following the channel and gives a great call / put buying opportunity with minimal time decay to premium as it arises just a week before expiry at closing price in the range of 3100. If the closing is above 3100 call for 3200 can give excellent return considering just 7 days to expiry and because it's a long trend channel break out the upside move shall be fast so results in prices can be seen before November expiry. If it retractes from 3100 then puts shall be available much cheaper rate due to last 3-4 days upwsing and hence put of 3000 can show immediate result before November series expiry.
NSE:BAJAJ_AUTO
by Pattern_Study
NIFTY 50 US ELECTION TRADE PLANHELLO EVERYONE! MY VIEW ON US ELECTION TRADE PLAN NIFTY50 RECENTLY BREAKED MAJOR SUPPORT ZONE AND ALSO WEEKLY TIME FRAME HIGH REJECTION AROUND 12000LEVELS WE CAN CONSIDER THESE RANGING LEVELS OF 11660 TO 12025 AS BOX FORMATION ON OVERALL HH'S AS PER TECHNICALS,IF BOX (RANGE)FORMATION FORMED ON HH"S MEANS IT WILL DEFINETELY BREAK DOWNWARDS IT PERFECTLY BREAKED DOWNWARDS AND MADE LL"S ON 4HR TF SO,PROBABLY THERE WILL BE A HUGE SELLOFF THIS WEEK IF NOT ENTERED BEFORE MEANS,SELL AT LH ON MONDAY ORELSE BELOW 11540 TARGET1-11270 TARGET2-11030 THANK YOU!
NSE:NIFTYShort
by GOKULAVARMA
Options buying and sellingI decided that before explaining complex strategies, I need to explain call options and put options and differences between buying and selling. (I'm adding down calls chart) The term "the option is worthless" meaning that the stock price didn’t finish above the strike price in calls or finish below in-puts. Buy Calls – Bullish “strategy”, you need to select a stock that will go up in price in a reasonable time. Limited loss (The maximum loss is what you paid for the option), theoretically unlimited profit. Buy Puts – Berish “strategy”, you need to select a stock that will go down in price in a reasonable time. Limited loss, theoretically unlimited profit. Selling Naked means that you only sell the option contract without owning the shares. 1 option contract equals 100 shares. Sell Calls (Naked) – In general, this a Berish “strategy”, but it depends. The seller wants the option to expire worthless, meaning all the value of the option will go to zero, the price of the stock needs to be at the expiration date under the strike price of the option. Theoretically unlimited loss, limited profit. Example: XYZ worth at the beginning $100 per share. The seller sold 1 option - Different calls: In the money option strike $95 worth - $6 ($5 intrinsic value + $1 time premium) At the money option strike $100 worth - $3 Out of the money option strike $105 worth - $1 In the money call sold – The seller sold a call at the strike price of $95 If the stock will finish anywhere below 95$ The call seller will profit $600 The stock has to go down at least $5 At the money call sold - The seller sold a call at the strike price of $100 If the stock will finish anywhere below 100$ The call seller will profit $300 The stock can be neutral or go down slightly. Out of the money call sold - The seller sold a call at the strike price of $105 If the stock will finish anywhere below 105$ The call seller will profit $100 The stock can be neutral or go down slightly or even go up in price and the seller will still profit. You should notice if the stock will go up in price large loss could happen. In theory, this loss is unlimited, in practice, the loss is limited by time. The stock cannot rise to infinity. Naked call selling is not the same as a short sale of stocks. While both have large potential risks, the short sale has much higher reward potential, but the call selling will do better if the stock remains at the same price. You can see from the example that the call seller can make money in situations when the short seller would have lost money. Covered call writing (selling) – I won’t go deep here, this means the seller of the option own 100 shares, the cover call writer is mildly bullish or neutral. People do this to decrease the risk of owning a stock or don’t believe the stock will go very high in price and they want extra profit. This limits the profit potential. Sell Puts (Naked) – In general, this a Bullish “strategy”, but it depends. The seller wants the option to expire worthless, meaning all the value of the option will go to zero, the price of the stock needs to be at the expiration date above the strike price of the option. Theoretically unlimited loss, limited profit. An example of selling puts is exactly the opposite of selling calls. The seller wants the stock price to be above the strike price of the option he sold. (Will show you down with another chart) What happens in the buyer and seller portfolio after expiration, several cases We will examine calls buy and sell if the stock finishes above the strike price of the option, for example, the strike price is 100 the stock finish at 105. The buyer needs to buy from the seller 100 shares ( 1 option contract) at the strike price, meaning he will need to have $10,000, but the stock is at 105. The buyer portfolio will be with 100 shares long at $100 with an unrealized profit of $500 minus the premium paid for the option minus commissions. The seller needs to provide those stocks, so he will be short 100 shares at $100, with a loss of (-$500) plus the premium he received from the buyer for the option, minus commissions. If the stock finish below the strike of the call option, the option is worthless and the buyer lost the debit he paid for the option, the seller received all the credit. No stock transaction is happening. Time – The more we get closer to expiration the greater the time decay, this is good for the seller and bad for the buyer, remember the seller wants the option price to go to zero, receive all the credit. Volatility – Raise in volatility is good for the buyer and bad for the seller, when volatility raises the option gets more expensive. If the option that was bought now worth more because of the rise in volatility the buyer profit from it. There is a lot more to say about this subject, every strategy has a different consideration that needs to be taken into account. Note: Naked option selling is usually a strategy for professional traders. Chart: Buy put – option price -> 129.4 , stock price -> 3286.33 , strike -> 3045, days -> 52 , implied volatility -> 47.4% (0.474), date-> 27/10/2020 Sell put – option price -> 127.25 , stock price -> 3286.33 , strike -> 3045, days -> 52 , implied volatility -> 47.4% (0.474), date-> 27/10/2020 Delta 0.3
NASDAQ:AMZNEducation
by ZoharCho
1
Why I booked profit on my shorts today?Context : As I explained in my post earlier, I expected strong selling in the zone 11380-11630. Remember this zone is where the shock moves started happening in February 2020. I actually did not trade much in the zone, but I started shorting around the upper range of the zone - around 11600. About Trade : I have been positional short from Sept 13, I bought Oct 29 PUTs to give me more time. But NIFTY moved in the anticipated direction. When I am sitting on profit, it is important to protect my profits. But also I should be careful of not being fearful . I did the following adjustments 1) I covered more than half of my position. 2) Remaining position I rolled below 200 points. I also hedged the same by selling even lower strike PUT of near expiry. All this ensured, I have taken profits. And then I am also in the trade. Downside is I won't be making large money if NIFTY continues to sell off in the next 2-3 days. Why did I booked some profit? 1) NIFTY made a very symmetrical move to the initial move, and many times, that makes traders to cover the positions. This means less momentum on downside. 2) There was a large 0.6%+ hourly bar at important support level - 11040. This also can be seen as a hammer in the 2hr chart. 3) Tomorrow is expiry. And because we had a large range month, it is not unnatural to have some confusing counter moves. It is better to step aside and just watch. References: Sep 13 Short Sep 3 Short Aug 28 Short
NSE:NIFTY
by Observe_Think_Act_Think
AT&T Moving south in the near future?AT&T looks to be fighting trending resistance, and is further being pressured out of its horizontal channel, falling out of the 28.92/30.04 price range. A light friday candle, arguably a doji, will not hold up this slight move in price northward. Good volume, however, and RSI Indicator suggesting a possible reversal off the 28.92 support. The question - Will it hold? The current trend says no - 8 EMA is now acting as resistance as well, and the last several weeks are pushing it south. Put/call volume ratio is 1.43, with put volume exceeding call volume. What's hard to tell, imo, is this - is this hedging volume, straddle/strangle strategies? I do believe, as in the recent past, this opens/pushes bull initially then falls bear. My top 2 strategies; $T (29.00) 28 P 09/18 0.08 Strategy #1 - Limit/market buy 0.08 OR $T (29.00) 28.50 P 09/18 0.15 Strategy #2 - LIMIT Buy @ 0.08, thinking this will open and run north to 29.26, dropping premium to my limit buy 0.08 Strategy #2 fulfills 3 things - a great discount toward a put buy, a better put strike position, being 0.50 closer to underlying price and better delta!! *Let's see what happens* DISCLAIMER - I am not a professional trader. These are merely my thoughts and possible moves; i enjoy watching these stocks validate my process or slap me across the face lol. If you are in need of professional assistance with your trades, don't look here. I am not that guy.
NYSE:TShort
by mrmaximo74
5
CLX crosses below 100 day EMAClorox NYSE:CLX has really been selling off this month. The stock has dipped below its 100 day exponential moving average more than twice recently. I am going to see if CLX break below the 200 EMA. If so, then the key levels to watch might be that bearish turning point line, which was drawn using previous support levels. Seeing this chart makes me wonder...Is the Coronovirus trade over? As the economy slowly starts to re-open, and talk about the Coronavirus fades into "yesterday's news," can we expect to see a selloff in other stocks that may have benefited from the pandemic? I certainly think so. As the month of November nears, you can expect to hear less about the Coronavirus and more about the upcoming U.S. Presidential election. Hang on to your shorts folks ... its about to get interesting.
NYSE:CLXShort
by UnknownUnicorn6775423