Low Risk & High Reward Option Trade

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Recommendation is for Education purpose only
Stock Name : YES BANK  |  Date : 24 – Dec -2019 | Expiry – Jan Series | Recommendation : Education Purpose
Trading Style – Strict stop loss if spot goes below 49 , hold long till stock crosses 55 / 57 / 59 .

Recommendation : Buy Call 60 CE Jan 2020 at 2.95 Target 5.50 . Lot Size 8800  ( Estimated Gains –  INR 22,000 Approx )  , Stop Loss ( If underlying cross below 49 and sustains for 10 mins or more book stop loss , Estimated loss ( INR 8800  {Considering option premium looses 1 Re } ) 

Underlying Data analysis : 

  • Healthy movement against the market since last 2 trading days.
  • Over 3 crore shares of consistent delivery trades in last week ( though delivery percentage is low ~ 13%)
  • Stock remained in positive zone of stiff 3 day resistance of  51.
  • Some really good volume longs seen without any misleading bulk deals.
  • Yes bank is highly volatile due to its announcement on the disclosure of the investor and the investment amount . Volatility will increase the option price .
  • Yes bank Q3 results are due in Jan  , stock can rally before the results as investors unwind position due to uncertainty .
  • Technically the stock is showing continuous buy zones above 50.75 but is resistant around 52 , once 52 level is broken we can see 55 and upwards.

1 min chart analysis : Resistance at ~51 levels , once crosses can see 55+ . Stock recovered by fresh strong buying.

 

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