Let us begin with a look at BANKNIFTY.

The fall was mainly through private sector banks. All the 3 stocks where we have sold PUTS were losers and the PUT prices went up causing a loss.

The loss could not be offset with the profit from bought BANKNIFTY PUTS.

The final result was that the strategy has now gone into a loss.

This situation had occurred earlier too but was overcome and we booked a profit of more than Rs. 24000 with the first setup of the strategy.

The present loss should not be a cause of concern and we give the market some more time to get it right for us.

We stay with the trades.

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.