Today is the May 2020 Series F&O Expiry day.

We had closed our trades earlier and booked the loss. April and May both have been losing months. Losses look bad and must look bad but have to be accepted as part of trading.

Losses invite criticism. It is okay. When you are in public domain, public has a right to say things which may not be to your liking.

One example:

This method is a real disaster for one’s money.

These are the kind of statements which are thrown when losses happen.

As if there are trading methods where you never suffer a loss. Believe me, there is only ONE SURE METHOD which will never give you a loss — DO NOT TRADE.

Otherwise, one has to bear with losses from time to time, many times.

My reply to the above comment:

Let us talk about yesterday.

NIFTY made a huge comeback yesterday. It seems all the talks of recession, GDP erosion, unemployment and labour crisis had taken rest for the day and market was just looking forward to good times ahead.

NIFTY moved up and kept moving up relentlessly through the day.

We could take all the three trades yesterday.

M&M CALL 460 could be taken at Rs. 12.00 ( it went lower also ) within few minutes of open. Other two trades were taken at our suggested price lower limit. Did not help much in the wake of NIFTY moving higher.

A bad day at office once again.

The status of trades at the end of day:

New Trade :

It is always tough to think of a trade after such a huge day. That is why one has a method. Keep doing what you have to do.

Let us look at SUNPHARMA.

Over 30 days, the stock is down 8.1% while NIFTY is up 0.35%.

Over 7 days, it has moved down to Rs. 450.90 from Rs. 466.45.

That makes it weak over 30 day and 7 day period.

IV of the June options is below 50 and volumes are okay.

We look for SUNPHARMA PUT 420 @ Rs. 8.60 -9.00 as a potential trade for June Series.

Lot Size is 1250 so the maximum risk in the trade is capped at Rs. 11250.

That would be the only trade for the day.

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.