Aurobindo Pharma: Chart set up and trading strategy
Aurobindo Pharma
Observations
- stock is currently trading in downtrend channel
- strong bounce back was seen from lower end of the channel
- the line of support at 885 identified in my previous post on June 24, 2021 also provided support
- currently trading at midpoint of channel
- till the time trading above the blue line, Medium term trend is still up
Given the set up, one may consider the F&O strategy
Sell 880 Put option around 14
Max profit potential Rs 9100/- per lot
Importantly inbuilt loss protection for a fall up to 866 on expiry day
Take care & safe trading
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Observations
- stock is currently trading in downtrend channel
- strong bounce back was seen from lower end of the channel
- the line of support at 885 identified in my previous post on June 24, 2021 also provided support
- currently trading at midpoint of channel
- till the time trading above the blue line, Medium term trend is still up
Given the set up, one may consider the F&O strategy
Sell 880 Put option around 14
Max profit potential Rs 9100/- per lot
Importantly inbuilt loss protection for a fall up to 866 on expiry day
Take care & safe trading
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
