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).
Holding period – 12 Days
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
Holding it with no adjustment for now
Current Pofit +8000
ITC |July Expiry|
Date initiated – 26/6/2020
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.