What a trade to miss? ….
Yesterday, I had suggested a CALL trade in ADANIPORTS. The price range was Rs. 3.80-4.00 for CALL 310.
The price came within a whisker of our range, the low being Rs. 4.15. Some readers might have taken the trade, but for the purpose of record, this is not a trade. How unlucky could one get?
This single trade would have taken care of the loss from all other trades. ADANIPORTS price was up 9% for the day.
CALL 310 had a low price of Rs. 4.15 and moved to a high of Rs. 16.90 before closing at Rs. 15.50.
No point in ruing the missed opportunities in life as well as in the market.
NIFTY went very high and then cooled off. As usual, it was financials and RELIANCE which did the damage to the index.
Our trades did not perform well yesterday. Even while HINDUNILVER was going down, PUT 1900 did not gain much. Other trades lost money, most of all RELIANCE CALL 1560 trade and once again we have moved away from hope.
Time is ticking away for all these trades.
SGX NIFTY is again indicating about 97 points up move. We brace ourselves for the day and hope it ends well for us.
New Trade :
COALINDIA has lost 14% over last 30 days as compared to 4% loss of NIFTY. That makes it a weak stock. Over the 7 day period, it has moved from Rs. 130.60 to Rs. 123.60. This confirms the weakness.
The 52 week low is at Rs. 119.20 which is not very far and the stock price looks like breaching that level soon.
We go for COALINDIA PUT 120 @ Rs. 2.55 -2.70.
Lot size is 2700 and maximum risk is at Rs. 7290.
As per our normal working out, the trade should have been for a strike about 4% away. That would be Rs. 118.60.
PUT 118 is also available for trading but that strike does not match the criteria of at least 100 contracts traded.
So going ahead with PUT 120.
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.