Welcome back to this series of low cost options.
We keep looking for the options which cost less than Rs. 2000 but may have a chance of delivering a good profit before expiry.
The series was started from June 2019 expiry month and was successful for first 5 months before showing a loss in November series.
Let us resume this journey once again.
The first option I go for is M&M PUT 480.
The last price for this option was Rs. 2.00 yesterday. This stock was showing good signs of weakness over last few days before it recovered somewhat yesterday. If the stock resumes its down trend, this trade can work out well.
M&M PUT 480 @ Rs. 1.80-2.00 has a maximum risk of Rs. 2000.
The second trade I look for is INFY PUT 620.
IT sector is showing weakness and INFY had gone below 620 level a while ago.
We take a risk of less than Rs. 2000 by trying to get INFY PUT 620 @ Rs. 1.30-1.50. If the stock opens lower, we go up to Rs. 1.60.
Lot size is 1200, maximum risk Rs. 1920.
These are the two trades for today. We shall add more to the list as the month progresses.
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.