The best options strategy in ITC for July 2020 Expiry

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Hey Folks, As you know that we have the expiry of July month. So today I’m sharing the best options strategy you can create in the last 2 week of monthly expiry.

Few things you need to keep in mind if you are initiating a live trade in last 2 weeks of monthly expiry.

  1. In the last 2 week, theta decay is very high, which can give you a good return in a very short time.
  2. But gamma will more aggressive in the last 2 weeks of the monthly expiry, so you have to monitor it very closely.
  3. If you are getting any breakout or breakdown from your breakevens then there are very few options for adjustments. So trade only if you can afford to lose that amount.
  4. If the return is high then risk will also high. So follow proper risk management plan.

Personal Suggestion: It’s better to create a wide range of strategy instead of a small range. Yes! with a wide range, you will get low premium but the probability to make that money will be very high compare to a small range and high premium. Let’s come to the best options strategy in ITC for July Expiry.

The best options strategy in ITC

In the last two weeks, I prefer an iron condor strategy because it has limited risk on both the side and it’s easy to manage too. I have written a detailed article about Iron condor strategy. You can go through it to understand the behaviour of this strategy and the steps you should follow to initiate this best options strategy.

First step to initiate a strategy is to find a range for that particular stock. For that we are analyzing chart and option chain data. Let’s start with chart first.

ITC chart today

If you look at the chart. you will find that 205 – 182 is the range for ITC. We are not using any indicator or something just looking at the current swing low and highs to find a possible range for that particular script.

Now let’s look at the Option chain data and try to confirm our range with help of Open interest and PCR. You can go through the below article too:

Open Interest analysis for the best options strategy in ITC

Open interest analysis of ITC

Based on the Open interest chart, we can see that 200 – 210 is acting as an immediate resistance zone and 185 – 180 is acting as an immediate support zone. Max pain is at 189.85 indication expiry level

This is confirm with Open interest too that 205 – 182 can be the range in ITC for the coming sessions.

The best options strategy in ITC

best option strategy in ITC

Possible adjustments for the best options strategy in ITC

You can follow these adjustments:

First, you can follow these breakevens as a stop-loss means you can close your strategy after a breakout or breakdown from this range.

or

If the loss is more then 3200₹, close this strategy.

or

Shift your call spread to 190 after a breakdown from 182. Means book profit in existing call spread and initiate a new call spread with 190 CE SELL and 195 CE BUY.

Same thing you can do with PUT spread after a successful breakout from 207. Means shift your put spread to 200 i.e short 200 PE & BUY 195 PE

I hope my articles are helping to trade with these options strategies. Which strategy you are using as a result-oriented options strategy? Do let me know in the comment box.

If you want to learn these option strategies with proper adjustments you can enroll in our Option Strategies – A Mentorship program.

I hope my articles are helping to trade with these options strategies. Which strategy you are using to generate your pay-check? Do let me know in the comment box.


Options Strategies – A Mentorship Program

On the 1st of September 2019, We have launched a new mentorship program for Option strategies, in which we are discussing how can we deploy these strategies? What rules we should follow before taking a trade? and what should be our adjustments if the script is moving against your direction?


DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this article or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

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8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market

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