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May 2019 — Options Once Again — Day 19 — Election Results Out

As promised, the day was volatile. The All Time High of 12041 did not hold for long and one by one 12000, 11900, 11800 and 11700 were breached. Ultimately it settled 80 points below the previous day's close. Now that the election monkey is off our back, trading could get back to normal. There will be normal trading challenges like company results, crude oil prices, USD INR exchange rate, US China trade wars and what not, but election worries are truly over. And with the big event out of the way India VIX crashed. With the crash in volatility options prices crashed. There was one point yesterday when KOTAKBANK was up by Rs. 25 and CALL 1520 was down by Rs. 5.00 at same time. We had TATASTEEL, TATAMOTORS and…
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May 2019 — Options Once Again — Day 18

May 23, 2019. The big election exercise comes to a conclusion today with counting of votes to begin at 8:00 am. We shall know by evening as to what would be the composition of the new government. Exit polls have indicated a continuation of the present dispensation. The actual outcome may be same. For the market, elections results are over hyped. Politics does not have a role in the market except to create knee jerk reaction situations and we may see that kind of situation today. Wild swings on either side should be expected though not of the magnitude we saw in 2004 or 2009. Yesterday was a subdued day for the market with NIFTY moving with volatility within a 100 point range. It closed with a gain of about…
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May 2019 — Options Once Again — Day 17

The heady feeling of the 421 points gain the previous day kept the upward momentum for the first half an hour yesterday. NIFTY made a new All Time High at 11883.55. We never know what makes the market do what it does. We will not pretend otherwise. It is not our job to find out the reasons of market actions. All the reasons which made market go up on Monday were present on Tuesday. But market decided to cool down a little and went down by almost 120 points, a good 200 points from the highest level. Let us see what was the impact on our trades. We bought SUNPHARMA PUT 390 at Rs. 7.00. Good that the stock moved lower in the later part of the day. As expiry…
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