Hey Folks! I hope you are safe and healthy in this COVID-19 pandemic. Every week I’m trying to share one strategy so that we can earn together. Today I’m sharing an Iron Condor Options Strategy in ICICIBANK for December Expiry. Read this post till the end to know the strategy and adjustments.
Before we jump to our strategy, let us understand a few things about the Iron Condor Options Strategy (Iron Condor Options strategy) first.
As we know, Iron condor is the best strategy with limited risk. This strategy works well in a range-bound script. So any liquid stock that is trading in a range, can be the candidate for an Iron Condor Options strategy.
There are a few more parameters one should follow before initiating this strategy in your account. I have written a deep article with an example for those who want to learn this Iron Condor options strategy.
So before you deploy this strategy in a live account, you should have a proper understanding of this strategy and its behaviour. So spend some time to learn the strategy first.
If you are looking for some Mentorship for these limited risk options strategies like Iron Condor Options Strategy with proper adjustments must click on below button.
Iron Condor Option Strategy in ICICIBANK
The first step to initiate an iron condor option strategy is to find the range of that particular stock. Let us look at the chart and analyze option chain data to find the range for coming sessions.
After a good rally, We can see that ICICIBANK is trading in a range. We need that type of stock only for the Iron Condor option strategy. Now based on the chart, 440 is acting as a strong support level and 520 is acting as a resistance level for coming sessions.
So based on this range (440 – 520), we can select our strikes. Let us look at the option chain data to confirm this range.
Open Interest analysis of ICICIBANK
Based on the Open interest chart, we can see that 500 – 520 is acting as an immediate resistance zone and 440 – 430 is acting as an immediate support zone. Max pain is at 470, indication expiry level.
This is confirmed with Open interest that 430 to 520 can be the range in ICICIBANK for the coming sessions. So we can use this range to make the Iron Condor Options strategy.
Iron Condor Options Strategy in ICICIBANK
Possible adjustments for this Options strategy
You can follow the below adjustments for this Iron Condor options strategy.
- First, you can follow these breakevens (434 & 526) as a stop-loss means you can close your strategy after a breakout or breakdown from this range.
- Or If the loss is more than 4000₹, close this strategy.
- You can shift you PUT Spread to higher levels and make it an iron butterfly after a successful breakout from 530. You can do the same with Call Spread i.e. shift your Call spread to lower levels after a sustainable breakdown from 430.
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.
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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 and the options strategy 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.