Eicher Motors Hedged Option Trade Analysis

Eicher CMP 3400
Bias- Bullish
Sector is bullish and stock is in Top 3 bullish in sector.
SL 3300 for Option Trade
Check attached charts for more information.


Participating in the trend using Bull Put Spread.
Stock may face resistance at 3475-3525.
Can be sideways to bullish
That is the reason for selection of BPS.

Sell 3400 PE
Buy 3200 PE

Sep series.

Delta of the spread is 0.3
Probability of the profit is 60%
Breakeven 3300
Maximum Profit = 22000 rs can exit at 70 75% of max profit.
Max loss is 30k but we will not wait till there, we exit at max of 10k loss.
Capital required for the trade around 1.1 lac

Now check charts of 3400PE option charts cmp 106.

Below 102 BO of previous low.
Below 88 all time low..
Also can keep SL of 145 for the option chart. If taking the spread then SL will be less than 10K.

Disclaimer: All the information posted is for education purpose only. Do your due deligence. Also check for liquidity of option before getting into trade, Options should be traded by experienced traders only..

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