Buy Asian Paint 2160 Put at Rs 35 & simultaneously sell 2100 Put at Rs 14
Lot Size 300.
Cost of the strategy Rs 21 (Rs 6300 per strategy)
Maximum profit Rs 11700 If Asian Paint closes at or below 2100 till 26 November expiry.
Breakeven Point Rs 2139
Short build up is seen in the Asian Paints Futures’ where we have seen 10% rise in the Open Interest with price falling by 1.5%;
Stock price has broken down on the daily chart with higher volumes where it closed at lowest level since 03 Nov;
Short term trend of the stock turned negative where stock price has closed below its 21-day EMA;
Oscillators like RSI and MFI are showing weakness in the stock.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
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