As seen from the above chart. Infy price formed a perfect Doji pattern at the upside leg and also near its RSI resistance, which shows the indecisive picture ahead of the Infy’s result. Hence we would like to place our bearish bet on the following , but with the option strategy:
Bear Put:-
Buy 1 ITM PE 1020 at 38
Sell 1 OTM PE at 17
Net pay or Maximum loss = 19 per lot
| Close at Expiry | Payoff of Buy Put ( itm) | Payoff of Sell Put ( OTM) | Net Payoff |
| 910 | 110 | -70 | 5250 |
| 920 | 100 | -60 | 5250 |
| 930 | 90 | -50 | 5250 |
| 940 | 80 | -40 | 5250 |
| 950 | 70 | -30 | 5250 |
| 960 | 60 | -20 | 5250 |
| 970 | 50 | -10 | 5250 |
| 980 | 40 | 0 | 5250 |
| 990 | 30 | 0 | 2750 |
| 1000 | 20 | 0 | 250 |
| 1010 | 10 | 0 | -2250 |
| 1020 | 0 | 0 | -4750 |
| 1030 | 0 | 0 | -4750 |
| 1040 | 0 | 0 | -4750 |
| 1050 | 0 | 0 | -4750 |
| 1060 | 0 | 0 | -4750 |
| 1070 | 0 | 0 | -4750 |
| 1080 | 0 | 0 | -4750 |
| 1090 | 0 | 0 | -4750 |
Nishant Bali, CMT