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Last Updated : Aug 12, 2015 12:28 PM IST | Source:

ICICI Bank option strategy by Way2Wealth

Way2Wealth has come out with its option strategy report on ICICI Bank. The research firm has advised buy ICICI BANK Aug 320 Call around 2.15 and August 280 Put around 1.20, in its report dated August 11, 2015.

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Way2Wealth's option strategy report on ICICI Bank

Strategy Rationale:
Bearish complex Head and Shoulders chart pattern is under making on the daily chart of the Icicibank. Prices rebound sharply in late July from the falling neckline support and made a high of 315.25. Now, we have a short-term top i.e. 321 in place and if prices succeed in crossing the same then it will result in pattern failure. Alternatively, prices will continue drifting lower and will breach the support line at 280. In the both the cases sharp move is expected.

Strategy Details
The strategy consists of buying 1 lot of ICICI BANK Aug 320 Call option at Rs.2.15 and buying 1 lot of Aug 280 Put at Rs.1.20. The premium outflow in this strategy would be 3.35. Initial outflow is estimated to be Rs.3350 at the time of initiation of strategy.

Profit and Loss Matrix:


Maximum Loss will be Rs.3350 if stock closes between 320 and 280 at the time of expiry. However, one should book profit if total premium becomes 9000.

Buy 1 lot of ICICIBANK Aug 320 Call around 2.15
Buy 1 lot of ICICIBANK Aug 280 Put around 1.20

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First Published on Aug 12, 2015 12:28 pm
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