Bank Nifty had wild swings yesterday.
It moved higher initially with the general Nifty trend and then moved sharply lower in the last hours of trading.
The Last Trade Prices for the three stocks on Wednesday were :
HDFCBANK — Rs. 2289
ICICIBANK —- Rs. 392.55
KOTAKBK —— Rs. 1333.00
All the three PUTS sold have become In The Money PUTS and further down move will cause the PUT values to go up. That is not good for us. It will cause loss in the premium received.
With all these down moves, BANK NIFTY has also moved lower.
Bank Nifty is currently at 30093.30 and Futures at 30319.50.
We are holding PUT 30300. This PUT will gain if the fall continues. So we are protected against a big loss.
The status yesterday:
Not as good as a day earlier but not losing.
We carry on with this unmindful of the up or down moves.
Nothing is to be done today.
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.
Mahesh Khaitan April 4, 2019 at 9:20 am
Sir…I do not understand why this change in Strategy from Buying Options to Selling Options? Is there a rationale behind it?Reply
admin April 4, 2019 at 9:26 am
There is no change. We are continuing with the Option Buying Series.
The new series on Bank Nifty Strategy is started for those readers who prefer to trade strategies for consistent gains.
The blog is about Options Trading, not just about Options Buying though that would be always my preferred style of trading.
PRAKHAR April 4, 2019 at 8:01 pm
LOve you Sir, to the core.Reply