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OPTION Strategy on the Last 
Week of Settlement. 
The Strategy is Based on Price Breakout on 
the Daily Price Chart on Stocks in the Last 
Week of contract expiry where Option 
Premium are quite low. We can command High 
Leverage whereas our risk in terms of 
Investment is Low. We have illustrated 3 
Stocks to show the Trade. Here the Contract 
Expiry Date was 25 Sep 2014. 
10/1/2014 1
APOLLOTYRE 25SEP2014 FUTURE DAILY CHART 
10/1/2014 2
APOLLO TYRE 25SEP2014 FUT 
• On 23-09-2014 APOLLOTYRE broke its Support 
line at 193.75 to Close at 192. Buy 2000, 190 PE 
at 1.6 with an investment of 3200. 
• On 24-09-2014 it touched a LOW of 185.65. The 
Value of 190 PE touched a low of 4.70. Even if 
we had reversed at Twice our rate (2*1.6 = 3.2 ), 
we would have made a Profit of 2000* (3.2-1.6)= 
3200, that is 100% Profit. Where as our Stop 
Loss level would be at 0.80 premium (2000*.80) 
= 1600. Clearly the Stock went further down and 
hence SL price was not achieved. 
10/1/2014 3
BHEL 25SEP2014 FUTURE DAILY CHART 
• State the main ideas you’ll be talking about 
10/1/2014 4
BHEL 25SEP2014 FUTURE 
On 23-09-2014 BHEL broke its Trend line at 
217.50 to Close at 216.35. Further on 24-09-2014 
it broke its Support Level of 214.5 to Close at 
210. Buy 1000, 210 PE at 1.25 with an 
investment of 1250. 
On 25-09-2014 it touched a LOW of 202.70. The 
Value of 210 PE touched a High of 6.90. Clearly 
the Stock went further down and hence SL price 
was not achieved. 
10/1/2014 5
HINDALCO 25SEP2014 FUTURE PRICE CHART 
10/1/2014 6
HINDALCO 25SEP2014 FUT 
• On 24-09-2014 Hindalco broke its Support 
Level of 157 to Close at 157. Buy 2000, 150 
PE at 1.00 with investment of 2000. 
• On 25-09-2014 it touched a LOW of 139.15. 
The Value of 150 PE touched a High of 6.00. 
Clearly the Stock went further down and 
hence SL price was not achieved. We could 
have easily made 2-3 times profit on this 
transaction 
10/1/2014 7
CONCLUSION 
• This Strategy is for Trades who have low 
investment to make in Futures and Options 
segment. Therefore Retail Traders can also 
participate in this type of Strategy. 
• It is a Low Risk Strategy 
• For taking Trading decision we are using Daily 
Price Chart to find Price Breakout on Stocks. 
• We than select which Option Contract have 
liquidity and which Strikes are priced at Low 
Premium. 
10/1/2014 8

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Option strategy on the last week of settlement

  • 1. OPTION Strategy on the Last Week of Settlement. The Strategy is Based on Price Breakout on the Daily Price Chart on Stocks in the Last Week of contract expiry where Option Premium are quite low. We can command High Leverage whereas our risk in terms of Investment is Low. We have illustrated 3 Stocks to show the Trade. Here the Contract Expiry Date was 25 Sep 2014. 10/1/2014 1
  • 2. APOLLOTYRE 25SEP2014 FUTURE DAILY CHART 10/1/2014 2
  • 3. APOLLO TYRE 25SEP2014 FUT • On 23-09-2014 APOLLOTYRE broke its Support line at 193.75 to Close at 192. Buy 2000, 190 PE at 1.6 with an investment of 3200. • On 24-09-2014 it touched a LOW of 185.65. The Value of 190 PE touched a low of 4.70. Even if we had reversed at Twice our rate (2*1.6 = 3.2 ), we would have made a Profit of 2000* (3.2-1.6)= 3200, that is 100% Profit. Where as our Stop Loss level would be at 0.80 premium (2000*.80) = 1600. Clearly the Stock went further down and hence SL price was not achieved. 10/1/2014 3
  • 4. BHEL 25SEP2014 FUTURE DAILY CHART • State the main ideas you’ll be talking about 10/1/2014 4
  • 5. BHEL 25SEP2014 FUTURE On 23-09-2014 BHEL broke its Trend line at 217.50 to Close at 216.35. Further on 24-09-2014 it broke its Support Level of 214.5 to Close at 210. Buy 1000, 210 PE at 1.25 with an investment of 1250. On 25-09-2014 it touched a LOW of 202.70. The Value of 210 PE touched a High of 6.90. Clearly the Stock went further down and hence SL price was not achieved. 10/1/2014 5
  • 6. HINDALCO 25SEP2014 FUTURE PRICE CHART 10/1/2014 6
  • 7. HINDALCO 25SEP2014 FUT • On 24-09-2014 Hindalco broke its Support Level of 157 to Close at 157. Buy 2000, 150 PE at 1.00 with investment of 2000. • On 25-09-2014 it touched a LOW of 139.15. The Value of 150 PE touched a High of 6.00. Clearly the Stock went further down and hence SL price was not achieved. We could have easily made 2-3 times profit on this transaction 10/1/2014 7
  • 8. CONCLUSION • This Strategy is for Trades who have low investment to make in Futures and Options segment. Therefore Retail Traders can also participate in this type of Strategy. • It is a Low Risk Strategy • For taking Trading decision we are using Daily Price Chart to find Price Breakout on Stocks. • We than select which Option Contract have liquidity and which Strikes are priced at Low Premium. 10/1/2014 8