I’m keeping call options in Indigo. The contract is valid for March with a 4,800 call. The purchase price is £65. What is the goal for this transaction? Do you recommend keeping it until its expiration date? – Yugesch, Thane
Interglove Airlines (£4,700.85): Inventory has been on an upward trend since January. After finding support at £4,000, it started to rise. After hitting a five-month high of 4,815.65 on March 7, it is now moderated to 4,700 pounds.
The chart shows that the uptrend is unscathed and remains intact in the short term until the price exceeds £4,420. The advantage is that the shares could be raised at £4,900 before the current expiration date expires.
Given the aforementioned factors, we recommend keeping the 4,800 strike call, which closed at £57.05 last week. The target is 130 pounds.
That said, recent price action suggests he is reluctant to form £4,780. So, if your stock does not exceed this level by the end of this week, you can consider closing the trading. This is because as the expiration date approaches, the time decay of options is enhanced, leading to potential losses.
I’m considering purchasing a put option for Torrent Power. Are you weak in your outlook? Which contract do you recommend? – Sai Aditya, Bengaluru
Torrent Power (£1,291.20): Stocks have been steadily declining since October last year. There was a certain recovery in March, but prices have been eased over the past few sessions.
The fall occurred on the back of the resistance at £1,360, which has a 50-day moving average (DMA). In particular, over the past few months, stock prices have fallen from the price region from several times between 20-50-DMA.
Therefore, the chances of falling appear to be high. However, price action suggests that it has been lost with downward momentum. Therefore, it is recommended to purchase put options only in the short term.
I recommend buying a 1,280-putt March Expiry, where premium closed for £30.30 last week. The target is £90. If the target does not hit until the end of this week, we will close the trade.
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