It is very rare that market brings you an unexpected gift.
When that happens, it is time to be grateful and accept the gift with thanks.
BANKNIFTY was down on Tuesday.
There were only 3 stocks gaining out of 12. All the three are the stocks where we have sold PUTS. This move made the 3 PUTS get into profitable positions.
Simultaneously, the BANKNIFTY PUTS bought by us gained value as the index fell.
We made money ( mark to market basis ) on both the legs of the strategy which is not a normal occurrence. That is why I called it a gift.
We are looking towards a likely profit of about Rs. 16000 from this set up and it is already giving around Rs. 9000.
Let us see where the market takes us today. And if we get somewhere near Rs. 12000-13000 level , we try to cash in.
Leaving it to the market has worked well so far. So we do just that again.
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.