August 2018— Options Buying Once Again

Our torture for the month continues. The slight decline in NIFTY on Friday did not help in any way.

YESBANK and TITAN were among the biggest losers for the day.

The NIFTY decline caused the CALLS to lose heavily and the PUTS did not gain much.

I am not sure whether we are in a better or worse situation than we were in June Expiry exactly at same point i.e. 4 trading days before expiry. In June, we turned profitable only on Day 19 and 20. This month we have 23 trading days and 19 of them have not been good. Let us go through the remaining 4 days and see the outcome.

Looking for clues :

We may see the all time high of 11620 taken out today. Asian Markets are prominently green. So the 25 point decline of Friday is likely to be reversed very swiftly. Whether it helps us is to be seen. We need YESBANK, GAIL, L&TFH to do very well to have any hope of coming out of this month respectably.

On the other hand, we would like HEROMOTOCO, IDEA , HINDPETRO and TATAMOTORS to move down very swiftly.

In such a situation, I would not be taking a new trade. We shall have few expiry day trades based on the current trend. Let us wait for them for now.

Be watchful 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.

Comments

Rajesh August 27, 2018 at 10:54 am

Dear sir,
The sensex is 300points up and nifty 100 PTS. But there is no significant change in our put or call. Why the market is descreminating us.?

Nathan August 27, 2018 at 2:19 pm

As a trader can we question the market behaviour ?
As per my experience and frequent pointer from Pramod ji’s write ups,
One cant logically reason the market behaviour.
We have seen so many times that a stock is going up after a poor result and sometimes a stock going down after good results.
These things happen in the market.
As traders, we have to accept and learn to live for the next trade.
May be our selections this time are wrong
Or
May be our selections proved right before expiry.
Market is full of unexpected moves.
And that is the reason it is always attractive. If everything happens as per understandable logic, perhaps market may not be studied, analysed and forecasted by so many investors / traders.
As a learning experience for us, Pramod ji is kind enough to share his thoughts on trading.
He always maintains the stop loss for his option trades are in general, the entire amount of premium paid.
We traders have to select and trade as per our own stop losses.
I personally in huge loss this month as I was on travel at Kerala and could not manage my trades effectively. But that is part of trader’s life.
Hope we will learn to earn better in due course of time.
Reply

Divyank August 27, 2018 at 9:15 pm

Just a trigger needed to get the DIIs on ground which are pumping in mutual funds.

Andy August 28, 2018 at 8:30 pm

I know it hurts terribly to look at, but when are the P/L tables going to appear again (with excluded items such as TITAN etc.). We should have the reality check as often as we could not just when things go in the right way, but especially when they don’t.

Also, looking forward to the final over action in this month’s T20 match.

admin August 29, 2018 at 8:58 am

We do not need pictures to tell us our loss. It is always there in mind and it hurts. It is no consolation that previous three months were profitable. The loss this month is significant and there is no way to miyigate it right now. We just have to move ahead to next month’s trades.

Let us watch the action over last two days.

Cheers.
Reply

Rajesh August 29, 2018 at 8:12 am

I have lost all hopes about our PUTs and Calls. Looks like this is a loss month. My first month options trading.. Huge loss.. Terribly eroded my capital.

admin August 29, 2018 at 8:55 am

Dear Rajesh,

This is market for all of us. A month ago there used to be congratulatory messages here about the successful trades. We learn our lessons and move on to next month.

Cheers.
Reply
Sunil Kumar Verma August 29, 2018 at 8:56 am

Same here Rajesh…. Huge loss in my first attempt.
Reply

Rajesh August 27, 2018 at 10:54 am

Dear sir,
The sensex is 300points up and nifty 100 PTS. But there is no significant change in our put or call. Why the market is descreminating us.?
- Nathan August 27, 2018 at 2:19 pm
  
  As a trader can we question the market behaviour ?
  As per my experience and frequent pointer from Pramod ji’s write ups,
  One cant logically reason the market behaviour.
  We have seen so many times that a stock is going up after a poor result and sometimes a stock going down after good results.
  These things happen in the market.
  As traders, we have to accept and learn to live for the next trade.
  May be our selections this time are wrong
  Or
  May be our selections proved right before expiry.
  Market is full of unexpected moves.
  And that is the reason it is always attractive. If everything happens as per understandable logic, perhaps market may not be studied, analysed and forecasted by so many investors / traders.
  As a learning experience for us, Pramod ji is kind enough to share his thoughts on trading.
  He always maintains the stop loss for his option trades are in general, the entire amount of premium paid.
  We traders have to select and trade as per our own stop losses.
  I personally in huge loss this month as I was on travel at Kerala and could not manage my trades effectively. But that is part of trader’s life.
  Hope we will learn to earn better in due course of time.
Divyank August 27, 2018 at 9:15 pm

Just a trigger needed to get the DIIs on ground which are pumping in mutual funds.
Andy August 28, 2018 at 8:30 pm

I know it hurts terribly to look at, but when are the P/L tables going to appear again (with excluded items such as TITAN etc.). We should have the reality check as often as we could not just when things go in the right way, but especially when they don’t.

Also, looking forward to the final over action in this month’s T20 match.
- admin August 29, 2018 at 8:58 am
  
  We do not need pictures to tell us our loss. It is always there in mind and it hurts. It is no consolation that previous three months were profitable. The loss this month is significant and there is no way to miyigate it right now. We just have to move ahead to next month’s trades.
  
  Let us watch the action over last two days.
  
  Cheers.
Rajesh August 29, 2018 at 8:12 am

I have lost all hopes about our PUTs and Calls. Looks like this is a loss month. My first month options trading.. Huge loss.. Terribly eroded my capital.
- admin August 29, 2018 at 8:55 am
  
  Dear Rajesh,
  
  This is market for all of us. A month ago there used to be congratulatory messages here about the successful trades. We learn our lessons and move on to next month.
  
  Cheers.
- Sunil Kumar Verma August 29, 2018 at 8:56 am
  
  Same here Rajesh…. Huge loss in my first attempt.

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August 2018— Options Buying Once Again — Day 20