Stock Option Trade – 2 (ITC-July Expiry)

Update 3 (7/7/2020)

Closed the trade as have gained 80% of maximum profit no point keeping the risk for 23 days more (till expiry).

Profit +20480

Holding period – 12 Days

RoI +20%

UPDATE 2 (2/7/2020)

Holding it with no adjustment, refer the snapshot below for further details.

Delta is closing in near neutral, current delta is now just 230

Current Profit +14080

UPDATE 1

(30/6/2020)

Holding it with no adjustment for now

Current Pofit +8000

ITC |July Expiry|

Date initiated – 26/6/2020

Trade Details

Days left to expiry – 31

Legs – 4

IV – 46

Results – To be announced after markets

Open Interest :

MAX PUT OI – 190

MAX CALL OI – 200

Put Call Ratio 0.49 = indicates bearishness

Technically – Sideways to Bullish

External Factors – Bullish

Option Pain at 195

Probability of Profit when initiated – 86%

MAX Profit – Rupees 25,280

MAX Loss – Rupees 38,720

Stop Loss @ -12,500

Capital Required – 1.1L

Projected RoI – 24%

Delta – 584 ( I will make Rs 584 for each 1rs move in ITC share prices)

I had initiated this trade at afternoon with upside protection of 21% and around 12% protection on the downside.

Reason for trade was HIGH IV and good range to be profitable. The stock moved almost -4% during the day and now Upside protection is at 16.87% and downside at 7.58%

My plan is to hold the trade till results are announced or till IV crashes.

I will look forward to make adjustments if the trade goes against me.

I have made the trade a bit on the bullish sides, probably with good results announced it will be back in range.

I will update the adjustments if done and how it goes like I had updated on all the previous LIVE trades.

Refer below snapshot for further details.

One thought on “Stock Option Trade – 2 (ITC-July Expiry)

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