One day up, another day down.

Markets make merry and we make nothing. This is the story of last 3 days.

Yesterday was a day full of contradictions. On the day NIFTY fell 50 points, we did better in CALLS. PUTS did not do well.

GAIL was the best performer of the day as it ended 3.61% higher. It was top gainer among NIFTY stocks. Made a new 52 week high at Rs. 399.40. The increase in the value of CALL 400 brought down the loss for CALL BUYER considerably. Today we look for this CALL to get In The Money.

The position for CALL BUYER :

Some relief. We expect things to get better from here.

For the PUTS it was a strange day.

With NIFTY down 50 points, we should have done better. BIOCON, TATAMOTORS, TATAGLOBAL, HEROMOTOCO and DRREDDY ended up as gainers for the day. Strange but true. All these PUTS lost out.

RELCAPITAL and HINDALCO moved lower but the PUTS did not gain much.

Only IDEA did something good for us.

The position of the PUT BUYER :

We need few more IDEAs.

New Trade for the Day : 

It is tough to take new trades when the previous trades are not doing well. It is a matter of conviction. Nothing risked is nothing gained. We still have 9 days of trading left including today.

Hindustan Petroleum ( HINDPETRO ) is likely to open higher as the Crude Price went lower overnight in US markets. But the stock has been very weak in the last 5 trading sessions. The last traded price for PUT 260 was Rs. 6.20. 

With stock likely to open higher, I would go for PUT 260 at near Rs. 4.50-4.80. ( Lot Size 1575 ).

UPL is another stock which gave us good results in the past. I prefer the known devils to unknown angels. This stock is also showing current weakness. I would go for PUT 580 for Rs. 5.50-6.00. ( Lot Size 1200 ).

With these two trades if taken, we shall have 4 CALLS and 10 PUTS .

14 trades in 15 trading days is not excessive trading. What remains to be seen is few profitable trades. It is time we get them soon.

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.