Welcome back to Monday morning.
The outlook for the day seems positive. It is likely that NIFTY goes above 11500 today. There will be lot of sound bytes on TV if that happens and all the best for those guys. For us simple folks, it is back to the tension and daily grind of trading.
With 8 trading days remaining , it is time to get a little active. Our CALLS look like doing well from now on. Let s keep a sharp eye on YESBANK, L&TFH and GAIL. These are the trades which could begin the turn around the position for us.
Among PUTS, BIOCON and IDEA look fine as of now. We expect HEROMOTOCO to maintain the down move and TATAMOTORS to once again move towards the 52 week low it made a few days ago.
It will not be easy. We have to go through the pain. Option Buyer’s rewards are seldom achieved without undergoing some anxiety and the process of pain.
The up and down move every alternate day is not good for our trades. Let us hope that the trend prevails in some of them accompanied by a volatile favorable move. That would make our day.
New Trades :
TITAN has done well over last 30 days. The trend is confirmed with last 7 day move also. The last price on Friday was Rs. 940.60.
With 8 trading days remaining we go for CALL 980 at a premium of about Rs. 10.00. Lot size being 750, maximum risk is Rs. 7500.
This makes it our 5th CALL for this month. Let us hope it does well for us keeping in view the likely up trend.
We are already into 10 PUT trades. No more addition to that list.
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.
Alok August 20, 2018 at 10:53 am
Sir our puts are bleeding RedReply
admin August 20, 2018 at 11:48 am
What is bleeding is we know. There is nothing we can do about it. Let us look at what is going right.With 7 days remaining a lot can happen.Reply
Alok August 21, 2018 at 10:17 am
Agree sir. This month has been rather interesting. I think there might be a big move ahead of this expiry. Lets sit tight and watch.Reply
Umesh August 22, 2018 at 7:46 am
Are you not well? If so please get well soon.Reply
admin August 22, 2018 at 9:27 am
I am well and fine. Was traveling and could not find time to write. Thanks for the concern.Reply
What is not well are the trades. Let us hope they get well soon.
Girish August 20, 2018 at 11:35 am
When you say we should keep a sharp eye on some of the stocks are you hinting at exiting and the time is right?
In a way, I want to know, what is your strategy for when to exit? In one of the previous series you had mentioned if the LTP is 4 times the price at entry, we can look for getting out. What do you suggest?Reply
Mahesh August 21, 2018 at 5:10 pm
Need miracle this month to recover half the cost.. hope next month we can recover this month premium..Reply
admin August 22, 2018 at 9:25 am
It looks difficult. Still 6 days remaining. I will discuss the situation in tomorrow’s post.Reply
Madan Mohan August 22, 2018 at 10:13 am
Dear Sir, I have two lots in Jet airways (both are in the profit) and two lots in PNB, shall i exit or take risk to hold it till the expiry. Kindly advise.Reply
Narayanan August 22, 2018 at 10:25 am
Has there been any previous occasion when so many PUTS have fared so badly [most of them are in paise} and then made remarkable recovery and profit was made?Reply
admin August 23, 2018 at 8:36 am
Look at the posts for June Expiry. Examples are here:
PNB PUT 80 was Rs. 0.40 on June 22. On June 28, I sold it for Rs. 6.70. High price was Rs. 7.30.
TATAMOTORS PUT 270 was Rs. 0.05 on June 22. On June 28, the closing price was Rs. 6.65. High price Rs. 7.00.
Anything can happen. Will it happen this time ? We do not know.Reply