Yesterday was just the reverse of previous day. Early down move turned into a big up move.
This helped our trade set up to get back into better profit.
All we need to do at this stage is just wait.
Trade cautiously, trade profitably.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.
Comments
Arun November 28, 2020 at 1:30 am
can you explain what is the strategy here?
Replywhat is the maximum loss in this strategy?
how the stocks strike and niftybank strike selection affect the profit/loss.
Pramod Kumar November 30, 2020 at 9:24 am
It has been explained multiple times in earlier posts.
Cheers.
ReplyArunkumar Boralingappa November 30, 2020 at 6:22 pm
Ok , I referred the earlier posts. I got the strategy like 2–3% down for Stocks and 5-6 % down for Banknifty Strikes selection. But still not got the maximum loss in the strategy. maximum profit i got it (remaining stocks premium after Banknifty premium payment). And selecting near/ far strikes , how does it affect profit.
ReplyThanks
Pramod Kumar December 1, 2020 at 8:35 am
These three stocks carry about 62% weight of BANKNIFTY. Any fall in their price has an impact on BANKNIFTY too. In case of a big fall in these stocks the index shall also fall. That will help us avoid a big loss. How much the maximum loss could be can not be defined but it will not be too big.
Cheers.
Reply