Suzlon - Bear Put Spread

prasham

Active Member
#1
Buy Suzlon 85 Put @ 8.20
Sell Suzlon 80 Put @ 5.65

Max Profit = 7650 (when both the above puts expire worthless)
SL = Suzlon Spot price crossing 80-81 levels.


1) Suzlon is performing weakly since quite some time. It has resistance at 80-85 levels.

2) Market too is overbought and when markets take plunge Suzlon being weak would definitely accompany.



EXPERTS PLEASE ADVICE
 
#2
Buy Suzlon 85 Put @ 8.20
Sell Suzlon 80 Put @ 5.65

Max Profit = 7650 (when both the above puts expire worthless)
SL = Suzlon Spot price crossing 80-81 levels.


1) Suzlon is performing weakly since quite some time. It has resistance at 80-85 levels.

2) Market too is overbought and when markets take plunge Suzlon being weak would definitely accompany.



EXPERTS PLEASE ADVICE
currently suzlong is at 75 level hence no one will give you the 85 pa at 8.5 since it has Rs10 as intrensic value
 

prasham

Active Member
#3
Current rates might be different but these rates as I remember are of Friday's closing.
 
#4
Current rates might be different but these rates as I remember are of Friday's closing.
just visit the nse site and in historic quote you will find 30th march only one lot of 85 put is got traded at Rs13 then aftyer no trade happen in this strike. more over who will send it at Rs8.50 when the stock is at 75.15 and it has almost 9.85 as intrensic value . i donot think option traders fools. any way if you have initited this strategy then best of luck
 

AW10

Well-Known Member
#5
Prasham, when trading such low liquidity counters, there is huge gap in bid and ask price..and many a time people quote unreasonable price and leave the order open.. (maybe they want some dumb novice to enter market order and they get filled).

My suggestion will be, to take ASK price (best price given by seller).. for the leg that u are buying and take BID price for the leg that u are trying to sell (best price given by buyer).

This will make paper trade more realistic. I have replied to one of your previous post on how to plan an option trade. I still see stuff missing in this plan.. so not going to repeat myself.. but IMO, there is gap in your plan.

All the best and happy trading.
 

Similar threads