L&T Ltd - Another Technically Challenged Stock - 7/28/2016

54 0
Larsen & Toubro's stock has relatively easy flight from 1200 to 1600, but now next 100 / 150 something points may not come that easy. So here again, preferred strategy is to sell covered calls against the position or if you really want to short it then buy puts during the spike higher near 1700 / 1800.
You might have noticed that we seldom advise to short sell a stock because easier money can be made by buying stocks rather than shorting it. Yes, shorting can bring quick fortune but there are more factors in favor of stock price rising than for bringing it down. So for retail traders who don't have information flow and means like professional traders, it is strictly prohibited to sell stock.
Beside, large blue-chip companies are for long term holding. Trading in / out without better understanding of technicals will leave you clueless and put a dent in your equity. Nothing is wrong in buying low and holding it long term but if you have little knowledge about technical analysis then it can help you optimize the account value by very harmless strategies like covered call selling.
Also, don't forget to book profits whenever market gives you a chance like this Asian Paints trade. Here also we will be on sell the call premium mode near 1200 for partial position. These are the kind of stocks which you never leave for next 20/30/50 years but it is absolutely essential to take partial profit during big rallies so that you can use that capital to buy it again at lower levels.
DE Deutsch
EN English
EN English (UK)
EN English (IN)
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Startseite Aktien-Screener Forex-Screener Krypto-Screener Wirtschaftskalender So funktioniert es! Chartmerkmale Hausregeln Moderatoren Webseite & Brokerlösungen Widgets Stock Charting Bibliothek Feature-Anfrage Blog & Nachrichten FAQ - Häufige Fragen & Antworten Hilfe & Wiki Twitter
Profil Profileinstellungen Konto und Abrechnung Meine Support Tickets Support kontaktieren Veröffentlichte Ideen Followers Ich folge Private Nachrichten Chat Abmelden