06/20/2022 1 OPTION Strategy on the Last Week of Settlement. The Strategy is Based on Price Breakout on the Daily Price Chart on Stocks in the Last Week of contract expiry where Option Premium are quite low. We can command High Leverage whereas our risk in terms of Investment is Low. We have illustrated 3 Stocks to show the Trade. Here the Contract Expiry Date was 25 Sep 2014.
1. OPTION Strategy on the LastWeek of Settlement.The Strategy
is Based on Price Breakout onthe Daily Price Chart on Stocks in the
LastWeek of contract expiry where OptionPremium are quite low. We
can command HighLeverage whereas our risk in terms ofInvestment is
Low. We have illustrated 3Stocks to show the Trade. Here the
ContractExpiry Date was 25 Sep 2014.10/1/2014 1
2. APOLLOTYRE 25SEP2014 FUTURE DAILY CHART10/1/2014 2 3. APOLLO
TYRE 25SEP2014 FUT On 23-09-2014 APOLLOTYRE broke its Supportline
at 193.75 to Close at 192. Buy 2000, 190 PEat 1.6 with an
investment of 3200. On 24-09-2014 it touched a LOW of 185.65.
TheValue of 190 PE touched a low of 4.70. Even ifwe had reversed at
Twice our rate (2*1.6 = 3.2 ),we would have made a Profit of 2000*
(3.2-1.6)=3200, that is 100% Profit. Where as our StopLoss level
would be at 0.80 premium (2000*.80)= 1600. Clearly the Stock went
further down andhence SL price was not achieved.10/1/2014 3 4. BHEL
25SEP2014 FUTURE DAILY CHART State the main ideas youll be talking
about10/1/2014 4 5. BHEL 25SEP2014 FUTUREOn 23-09-2014 BHEL broke
its Trend line at217.50 to Close at 216.35. Further on 24-09-2014it
broke its Support Level of 214.5 to Close at210. Buy 1000, 210 PE
at 1.25 with aninvestment of 1250.On 25-09-2014 it touched a LOW of
202.70. TheValue of 210 PE touched a High of 6.90. Clearlythe Stock
went further down and hence SL pricewas not achieved.10/1/2014 5 6.
HINDALCO 25SEP2014 FUTURE PRICE CHART10/1/2014 6 7. HINDALCO
25SEP2014 FUT On 24-09-2014 Hindalco broke its SupportLevel of 157
to Close at 157. Buy 2000, 150PE at 1.00 with investment of 2000.
On 25-09-2014 it touched a LOW of 139.15.The Value of 150 PE
touched a High of 6.00.Clearly the Stock went further down andhence
SL price was not achieved. We couldhave easily made 2-3 times
profit on thistransaction10/1/2014 7 8. CONCLUSION This Strategy is
for Trades who have lowinvestment to make in Futures and
Optionssegment. Therefore Retail Traders can alsoparticipate in
this type of Strategy. It is a Low Risk Strategy For taking Trading
decision we are using DailyPrice Chart to find Price Breakout on
Stocks. We than select which Option Contract haveliquidity and
which Strikes are priced at LowPremium.10/1/2014 8
