ACC - One of the Adani group stock which managed to hit a new yearly low seems to have given a failed break down on daily chart.
A Tweet was also shared to highlight this view on chart - https://twitter.com/indian_stockss/status/1642134287746211847?s=20
Now how to play this view ?
Multiple ways to play a bullish view in a stock, but than the 1st question is is the stock bullish 😅
I have selected a way to play a view of break down failure on this stock via call ratio where downside risk is defined at the time of the trade initiation. Below are my open position for this stock with a view that it should stay in range and give some bounce from here.
How to manage this option strcture going forward ?
If stock goes down - the risk is defined, also a roll down of short CE can be done to a closer strike
If stock stays here - Is like the best outcome
If stock goes up - Stock going up to 1750 is fine but above that its going to hurt due to the high ratio, for which we will be rolling up the short CEs above 1750-1760 zone to keep m2m in check.
All trades that I take are discussed with the #TradersClub members, all the aspects of risks, management and view on the stock is discussed before initiating any position.
#TradersClub learning session is scheduled for 15 & 16th April, details on link - https://www.indianstockss.com/tradersclub-1
Disclaimer : - The above charts shared are for education purpose only, study used to select the chart is failed breakdown. I do have open position in the mentioned stock in form of option structure as shared above.