DailyPlay – Opening Trade (INDA) – September 11, 2023

INDA Bullish Opening Trade Signal

View INDA Trade

Strategy Details

Strategy: Long Call

Direction: Bullish

Details: Buy to Open 8 Contracts Oct 20th $43 Calls @ $2.42 Debit per contract.

Total Risk: This trade has a max risk of $1,936 (8 Contracts x $242) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $242 to select the # shares for your portfolio.

Trend Continuation Signal: This stock is in a bullish trend and recently broke higher.

1M/6M Trends: Bullish/Bullish

Technical Score: 9/10

OptionsPlay Score: 81

Stop Loss: @ $1.20 Credit (50% loss).

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Friday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

Investment Rationale

As the G-20 Summit in India is wrapping up, geopolitical risks continue to rise and manufacturing capacity has seen a substantial shift towards India. Seen as more stable, friendlier to Western nations and a population growth that supports economic growth, India has seen a substantial inflow of capital investment. Our bullish India trade (INDA) has now broken out above a key resistance level of $44.75 and has room to rally to its $49 recent highs. Since our investment thesis has been proved correct with this breakout, it is now an opportunity to add some more exposure to this trade. I’m going to purchase more contracts of the Oct $43 Calls @ $2.42 Debit. With a hypothetical portfolio of $100,000, I recommend adding another 2% of the portfolio’s value to this trade, which is 8 Contracts for a risk of $1,936. We will move our stop higher on the spread at 50% of the premium of the 8 new contracts @ $1.20 Credit.

INDA – Daily