The stock is trading above the prior parallel resistance. It is moving in an upward channel and retraced 38.2 per cent of the previous fall. Wednesday's move of over 10 per cent on the back of the highest volume in the last seven years indicates a huge accumulation of interest.  

The stock of ITC is trading in the range for a long period. To take advantage of this range-bound movement. 

In a transition phase to stage-2, the stock price is above 150-DMA and 200-DMAs. The 150-DMA is above the 200-DMA while the latter has turned up. 

It is also the best indicator to find out the swing highs & lows. It is an advanced derivative market mood or a sentiment indicator that gives clues well before other indicators. It provides clues to traders about the market tops before it turns.  

The 710 CE has enough liquidity to trade while the capital required to apply this strategy is Rs 2,80,000.

The 2000 CE and PE together have a premium of Rs 28.55. This means that if the stock closes between Rs 1,976 - Rs 2033, the theta will melt like ice. In this condition, one can apply a short straddle by selling both 2000 strike CE and PE in this April series.   

What is a bull call spread strategy? A bull call spread strategy includes initiating one long call with a lower strike price and one short call with a higher strike price. Both call options have the same underlying stock as well as the same expiration date.

Many options traders do not look at Greeks, as very few resources are available to track them. It’s not usually preferred as it is difficult to understand them and build a proper strategy.  

‘Time is money’ is an age-old adage that can be precisely applied to options trading. Out of all Greek phrases, this is the most easily understandable, and anyone can easily calculate Theta (time value). At expiration, options have no time value. If one understands this time value theory, it is easy to build an expiration strategy. 

Dow Theory categorises three movements in the financial markets, which is known as the primary, secondary, and daily movements.  

According to history, the market trend only about 30 per cent of the time and the remaining 70 per cent moves in a range. Use this historical fact as an advantage and apply short straddles for profitable trading. You can adjust the short straddle into strangle at a later stage by exiting the profitable position and hedge the loss-making option.