Once again, banking stocks were the weak spot in the market. BANKNIFTY chart tells the story.
The problem for us was more severe as all the three stocks were losers. The premiums of the sold PUTS went up causing further loss. The gains were there in the bought PUTS of BANKNIFTY but those gains could not cover the loss completely.
Overall position is not looking good now.
We have seen in the past that these mark to market positions are transient and can change for the better ( or worse ) in just a day.
We stay with the trades and look for the stocks doing better than the index.
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.