Yesterday was for the bears.

NIFTY closed down by 101 points.

NIFTY had closed at 11167.30 on July 26, 2018 ( July Expiry ). In 5 trading days it made an all time high at 11390.55 on august 01 and climbed down yesterday. Now it is up by 77.40 points in 5 trading days. A minor gain, though still near the all time high.

Significantly NIFTY was beaten down more on the back of decline in Bank Nifty. Midcap index did much better.

NIFTY will keep on going up and down. Let us see what happened to our trades.

CALL BUYER :

Both L&TFH and YESBANK  went down sharply and then recovered from the low points. Ended up in minus. Calls lost further in value.

This is the status:

PUT BUYER :

PUTS should have gained. Here DRREDDY has gone real bad. On a down day, PHARMA stocks were up. This PUT lost out a little more.

TATAMOTORS stayed flattish throughout the day and is not performing as per expectations.

HINDALCO fell initially but recovered later.

The new trade yesterday, HEROMOTOCO could be done and ended mildly better.

This is the status:

We stay with all the 6 trades.

New Trades :

CALL BUYER :

GAIL is strong and trading close to 52 week high.

Current price is around Rs. 379.

CALL 400 at Rs. 6.00 looks fine. Lot size is 2667. That makes it a bit costly option. Check your risk appetite before going for the trade.

PUT BUYER :

Our old trusted stock for PUT BUYING — Reliance Capital is showing signs of moving down. One has live with the fact that it is extremely volatile. We see around 4-5% movement almost every day. It is good when it is for us; it is hurting when it goes against us.

For good profits in Options Buying going through this difficult phase is essential.

Current price is Rs. 408.35. We go for a PUT about 10% away. That would be a strike of 370.

PUT 370 at Rs. 7.00 -7.50 would be my choice.

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.