Breakout Stocks

A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support.

Below are some of the breakout stock that can be traded in the next couple of days:

1. Automotive Axle form a well defined based and breaking the 52 week high with the high volume:

2. M&M: It is in the automotive segment, M&M is one of the largest vehicle manufacturers by production in India. This share is already in uptrend and consolidating before breaking the resistance:

3.  Rajesh Export is in the jewellery business and due to high demand in gold and rising price it can give the very good return in the upcoming days:

 

USDINR positional option selling strategy:

Forex market is the one of the largest market in the world and in the NSE there are fewer currencies pared are listed such as USDINR, JPYINR, EURINR and GBPINR.

USDINR is the a currency derivatives market where we can sell the option and make some earning as per the market movements. 

We can trade USDINR Short Straddle on weekly options that will help to earn in the range bound market. Below is some description about strategy.

The margin of option selling for USDINR one lot is 2000 to 3000, so in this strategy we will be selling 10 lots to maximize the profit.

Instrument: USDINR Weekly Options Straddle ATM call and put

Lots : 10 lot

Entry Time : Monday after 9.30 AM

Exit Time : Thursday after 3.00 PM

Stop loss: 1200 per trade

Target: 2400 Per trade

This is the positional option selling strategy for monthly income.

Once the stop loss and profit triggered take another trade after 2 to 3 hour that will give some time to settle the market. 

In case of three stop loss triggered for the week, please do not trade for rest of the week and next trade will be taken in the next week only, discipline is a key of success.

Happy Trading!

Bank Nifty Strangle

A strangle is an option trade occurs when a trader bets that a stock will rise or fall but isn't sure of the direction and also for a specific range.

A strangle trade consists of the simultaneous purchase of both a put option (betting that the stock price will go down) and a call option (betting the price will go up). Importantly, both the put and the call options must be purchased at the same distance from ATM and have the same expiration date in order to be effective.

Bank Weekly Short Strangle is a income strategy that will help to earn in the range bound market. Below is some description about strategy.

Instrument: Bank Nifty Options

Entry Time : After 9.20 AM

Exit Time : After 3.00 PM

Max Entry : 2 per day

Stop loss: 1000 per trade

Target: 2000 Per trade

Max Loss per day 2000.

We can take 500 away call and put based on the premium available in the market for example we can take 100rs call and 100 put.

We also need to adjust the strangle as per the market movement lets say if bank nifty move 200 point up so close existing strangle and put new one based on the market and vice versa, that will manage the risk and maximize the probability of profit.

Once the stop loss and profit triggered take another trade after one hour that will give some time to settle the market. 

As per the historical back testing we can earn 4 to 6% ROI per month and also automate the strategy as per the time and demand.

Happy Trading!

My smart algo

A straddle trade occurs when an investor bets that a stock will rise or fall sharply but isn't sure of the direction.

A straddle trade consists of the simultaneous purchase of both a put option (betting that the stock price will go down) and a call option (betting the price will go up). Importantly, both the put and the call options must be purchased at the same price and have the same expiration date in order to be effective.

Bank Weekly Short Straddle Intraday is a strategy that will help to earn in the volatile market. Below is some description about strategy.

Instrument: Bank Nifty Options

Entry Time : After 9.20 AM

Exit Time : After 3.00 PM

Max Entry : 3 per day

Stop loss: 800 per trade

Target: 1200 Per trade

Max Loss per day 2500.

Once the stop loss and profit triggered take another trade after 15 to 30 minute that will give some time to settle the market. 

As per the historical back testing we can earn 6 to 10% ROI per month and also automate the strategy as per the time and demand.

Happy Trading!