Markets opened lower with Nifty below 9,500 levels on Monday. Indian equity markets saw a dip of more than 4 per cent on Monday. Global cues have been weak following the latest US-China tension. Asian indices have also seen thin fall today.
According to a Moneycontrol report, experts expected Monday’s session to see a flat or negative opening as prices have been facing many resistance zones in the market. As prices face the 50-day moving average, trading it on the higher side in one move is difficult and some retracement is very likely. Thus multiple resistance is likely to hamper the bullish sentiments and profit booking can be expected in the next few days.
In order to steer clear of retracement moves, or the temporary reversal of an overarching trend in stock’s price, a modified ‘Marriage Call’ move can come in handy for traders.
The report further added short positions can be initiated in the future with the help of the unconventional strategy. The At The Money (ATM) call option in the long position can be bought to safeguard the position. Also, the Out of The Money Put option can be sold to cushion the damage further.
The Marriage Call can be tweaked a little by writing Put option 9,400 strike price to bring down the costing further.
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