Yesterday turned out real bad for us.
NIFTY gain on Monday did not hurt our trades but yesterday was the day when everything went bad.
NIFTY gained 42 points.
In all these gains, the only stock in which we hold a CALL went down.
IDEA, TATAMOTORS, BIOCON all went up after being down in the early trades. Only SUNPHARMA and DRREDDY stayed in the negative for the day but DRREDDY PUT 2500 still lost some value.
Our trades saw a big reversal and we moved to a loss of more than Rs. 12000 from a slightly positive position.
In option trades one single day can cause a significant damage.
Before we start worrying let us remember the fact that the damage for option sellers can be much bigger. They can be wiped out completely on a bad day. We live to fight another day.
The position at close yesterday:
The picture does not look good. It may change over next few days.
We have done our part by taking the trades. Now the market is doing its job and somewhere in the process we look for few of our trades to come good in a big way. The key to success is patience and belief.
We stay with these trades.
New Trades :
We are already having 8 trades to watch for. At this stage I would not like to add more trades till few of them show good profit.
It is important to keep looking for opportunities and it is equally important to be disciplined and stay within our comfort zone by protecting the capital.
No new trades today.
Asia Markets are weak today. If the same trend unfolds here, we may see some improvement in our trades.
Be watchful, be careful.
Trade cautiously, trade profitably.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.