According to an expert, Havells (CMP 1270) has formed a "flag pattern" and is likely to surge to Rs. 1350. So, I sold a Sep 1200PE for a premium of Rs. 26.25 each. Even if the stock does not surge and even it dips a bit, I can still keep the premium.
(https://i.ibb.co/YR3cD2q/havells.png)
https://twitter.com/jbhanushali9/status/1429656358345789449
https://twitter.com/RajarshitaS/status/1430012987893370886
Unfortunately, the analysis was not correct. Havells has plunged 4% and is at my strike price of 1200. There is a MTM loss of Rs 16000. Let us see whether it recovers and closes above by the expiry.
Thankfully, Havells has recovered to 1356 with the result that I have gained on the Puts of 1100 and 1200.
As of date, there is a handsome gain of Rs. 28000.
(https://i.ibb.co/6BjhhyD/havells-options-strategy.png)
I booked profit of Rs. 22250 in the 1200 PE. I had rolled over the 1100PE to 1300PE.
(https://i.ibb.co/zfbPMrW/havells-options-strategy2.png)