Hello Traders,
today I`d like to share the chart of "Bajaj Auot Ltd"., an Indian stock, that has risen since 08/23 in an impulsive move!
What caught my eye, is the fact, that the stock broke out to new highs on Friday, after a consolidation in a rectangle above 7419!
If this brekout is succesful, the stock should advance to multiple new high`s in the coming days and weeks.
Keep in mind, that a new ATH always is a new "buy-signal"!
This opens the door to sell a "Short-put" at tomorrows opening, and you will take the premium at first!
The next interesting fact is, the opportunity to set a close "stop-loss" @ 7210 or at the lower boundary of the rectangle @7032.15!
Choose a expiry date (max at 6-10 days) and a price "in the money"! Check before if any financial news to follow in the coming days for this stock! If so, let the option end before the news!
Let my know your thoughts about this trading-idea!
I am always thankful for comments, critics and new ideas!
Have a great week.....
Ruebennase
Please ask or comment as needed.
Trading based on this analysis is at your own risk.
today I`d like to share the chart of "Bajaj Auot Ltd"., an Indian stock, that has risen since 08/23 in an impulsive move!
What caught my eye, is the fact, that the stock broke out to new highs on Friday, after a consolidation in a rectangle above 7419!
If this brekout is succesful, the stock should advance to multiple new high`s in the coming days and weeks.
Keep in mind, that a new ATH always is a new "buy-signal"!
This opens the door to sell a "Short-put" at tomorrows opening, and you will take the premium at first!
The next interesting fact is, the opportunity to set a close "stop-loss" @ 7210 or at the lower boundary of the rectangle @7032.15!
Choose a expiry date (max at 6-10 days) and a price "in the money"! Check before if any financial news to follow in the coming days for this stock! If so, let the option end before the news!
Let my know your thoughts about this trading-idea!
I am always thankful for comments, critics and new ideas!
Have a great week.....
Ruebennase
Please ask or comment as needed.
Trading based on this analysis is at your own risk.