PI Industries Limited

PI Industries : Straddle / Strangle

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The stock's volatility has jumped-up significantly in last 2-3 days.

The stock has resistance around 3700, and support around 3400 levels with a minor gap.

The trend isn't that strong yet - but keep a eye on, in case it changes.

The level of 3700 has maximum CE OI built up, so will act as a signifiant resistance in Dec series.

Idea 1 (less margin) : Sell 3650CE and Buy the 3800CE to create a spread
Idea 2 (higher margin) : Sell 3600CE and 3450PE to create a high probability strangle. Do adjustment if it starts trending strongly.

We should be able to make 4-5% return on capital with this strategy.

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