📉 Chart Context:
📊 Derivatives Insight:
📈 Strategy:
Strategy Bias: Neutral / Mildly Bearish
⚠️ Note: This strategy is suitable only for investors already holding a sizeable position (≥500 shares) in Reliance. It is not a recommendation to buy the stock solely for option writing.
With 500+ shares held, this aligns perfectly for a covered call:
⚠️ Risk Management:
📌 Conclusion:
This is a textbook low-risk income strategy using technical resistance, OI data, and IV edge. Unless a fresh breakout emerges, ₹1600 stands firm.
Disclaimer: This analysis is for educational and informational purposes only. It does not constitute investment advice or a recommendation. Options trading involves risk. Always do your own research or consult a financial advisor before making decisions.
- Reliance recently rallied ~25% from lows near ₹1,150 to ₹1,450.
- The rally stalled at the broken lower trendline of a long-term channel, turning resistance.
- Price action now showing rejection around ₹1,435–₹1,450 zone — a historical supply area.
📊 Derivatives Insight:
- July ₹1600 CE has the highest Open Interest across the chain: 3.6 lakh+ contracts.
- This strike acts as a clear ceiling for market participants.
- IV for ₹1600 CE is elevated at 21.8%, indicating overpricing of far OTM risk.
📈 Strategy:
Strategy Bias: Neutral / Mildly Bearish
⚠️ Note: This strategy is suitable only for investors already holding a sizeable position (≥500 shares) in Reliance. It is not a recommendation to buy the stock solely for option writing.
With 500+ shares held, this aligns perfectly for a covered call:
- Sell July ₹1600 CE at ₹7.20
- Generate passive income (~₹3,600/lot) while capping gains ~13% above CMP
- Play on sideways or weakening structure without exiting core position
⚠️ Risk Management:
- If Reliance breaches ₹1600 before expiry, gains above this are capped
- Position sizing and pledge margin must be managed correctly
📌 Conclusion:
This is a textbook low-risk income strategy using technical resistance, OI data, and IV edge. Unless a fresh breakout emerges, ₹1600 stands firm.
Disclaimer: This analysis is for educational and informational purposes only. It does not constitute investment advice or a recommendation. Options trading involves risk. Always do your own research or consult a financial advisor before making decisions.
ملاحظة
Expecting range-bound action; covered call remains low-risk income strategy while upside remains capped.تم إغلاق الصفقة يدويًا
The original setup relied on price staying capped near ₹1460–₹1500. That cap has eroded. With breakout strength building, the risk of assignment outweighs potential yield. Strategy stands invalidated — no longer a favorable covered call candidate at this stage.ملاحظة
I think, overall the strategy held. Reliance didnt hit 1600. It was a good call.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.