August 2018— Options Buying Once Again — Day 21 and 22

Another record high.

NIFTY just does not know where to stop.

We are facing such situation that everything which can go wrong is actually going wrong.

On a day when NIFTY moved up by 46 points we have 2 of our CALL options terribly declining. GAIL and YESBANK being the big losers for the day. HINDALCO on the other hand was the top gainer. You could not expect worse than this.

GAIL touched Rs. 394 and there was a glimpse of a chance that this CALL would become in the money and would give us something over last two days. It declined sharply and all seems to be over in this option.

Not that there is much left in the other trades. Except HINDPETRO 260 PUT everything else looks like a lost cause as of now.

Prudent thing would be to put this month behind us and move on.

Expiry day Trades :

TATAGLOBAL 230 PUT looks a good candidate. It should be possible to get it for around Rs. 1.50.

I would go for SBIN 300 PUT also for around Rs. 1.50-1.60.

That is all for this morning.

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

Nathan August 29, 2018 at 9:50 am

Good morning Pramod ji and all.
Hope we all will be able to go ahead through this month’s result.
As “There is always another day and another Trade to handle”, let us move ahead.
As I have enrolled myself for a Vipassana Meditation course, I will be missing the initial trades of the next month.
Will be coming back as soon as possible to join with you all for our Learning cum Earning experience.
Best wishes to all !

Vijay August 29, 2018 at 10:13 am

Hello Sir,
I think we are still hopeful of L&TFH. Let us wait and see how it goes. Thank you for your guidance.

-Vijay

admin August 29, 2018 at 6:57 pm

CALL 190 went up to Rs. 3.10 when the stock went above 189. That was the time to quit. Our BUY was for Rs. 2.60. Those who did not exit, saw it fall back to Rs. 0.65. This is the topsy turvy world of Options.

Cheers.
Reply

Manas August 29, 2018 at 10:17 am

Appreciate your time put forth in writing this. This is learning for all of us out there.

Winning and losing is part of game.

Cheers

sathish rajendran August 29, 2018 at 11:16 am

i believe loosing is an essential commodity…

Aditi August 29, 2018 at 5:15 pm

WoooooooooW! Amazing trades sir.

I’ll loan amount from bank and will trade more on your calls.

admin August 29, 2018 at 6:55 pm

Thanks for the taunting message. It is well deserved for this month. One bad month after 3 great ones would fetch some brick bats. This is life.
On a sober note, trading should never be done with borrowed money.

Cheers.
Reply

Manish August 29, 2018 at 7:46 pm

I don’t think any trader makes money consistently every month. We have seen past profits and we will see them in the future too.

Rohit Shourya August 29, 2018 at 7:52 pm

I too trust so. Like in July, in spite of the Nifty going higher, most of the profit was made in the Puts. The system works.
Reply

Ravi kapoor August 29, 2018 at 8:01 pm

All the trades fail.all money washed. It is my ist month for the trade.how can I believe?.even a single trade is not in profit.some thing is wrong.think again & again.how can I say cheers? .this is the big loss I faced in my life. Thanks for your guidance.

Vijay August 29, 2018 at 8:28 pm

Dear Ravi Kapoor,
As promod ji always say you as a trader in options should be prepared to lose all the money that is put into the options. I am not sure if you have followed the previous months trades but prev 3 months was in profit. So, it is part of the game.
Be positive, look forward for the next month trades.

-Vijay
Reply
- admin August 29, 2018 at 8:36 pm
  
  Dear Vijay,
  
  Thanks for your support. I sincerely believe that people have a right to vent their feelings when things go wrong. This place is meant for sharing your triumphs and disasters both.
  
  Cheers.
  Reply
  - Jatin August 30, 2018 at 1:29 pm
    
    Dear Sir,
    
    I think I do not think it is wise to vent over because it has been clearly mentioned that these trades are for the educational purposes and any loss/profit arising after taking these trades solely belongs to the individual and as per my understanding nobody has been forced to take these trades so it is no justified to cry over spilt milk.
    Reply
admin August 29, 2018 at 8:35 pm

Dear Ravi,

Your concern is genuine. Almost every trade has gone wrong. There were chances in YESBANK and GAIL at some point of time but those chances were not taken. The stocks have shown volatility in the wrong direction or none at all. I know that is no relief for the money lost but there is no option but to try again. I have been personally in such situations many times and it takes one or two months to come out of the losses.

Let us strive to get it back.

Regards
Reply
Divyank August 29, 2018 at 8:36 pm

Ravi Kumar this blog is for learning,he never said to trade on the selections ,you should never bet with your entire money at once. you should analysis yourself when to enter the trade because it is you whose money is at the stake. And most importantly if you are not cool with the fact of losing that money options buying is not the way then.
P.s.- i have also lost but they were my own decisions and timings.
Thanks.
Reply
- admin August 29, 2018 at 8:38 pm
  
  Dear Divyank,
  
  Ravi is right in expressing his feelings. In fact he has talked to me also about this. Let us not hurt anyone’s feelings.
  
  Thanks for your positive comments.
  
  Cheers.
  Reply

Prince Nahata August 29, 2018 at 8:39 pm

Sir please don’t get hurt by negative comments from some readers.I apologize.
Please never stop giving us your valuable guidance.

admin August 29, 2018 at 8:46 pm

Dear Prince,
I was telling not to hurt Ravi’s feelings.
I know how to accept the good with the bad and such expressions are normal.
Thanks for your support.
Cheers.
Reply

Mahesh August 29, 2018 at 9:08 pm

Tomorrow Idea should provide some relief. Let’s hope idea comes down by 1 or 2 rupees..

SJ August 29, 2018 at 10:23 pm

Even i am in loss but this is also learning for me. I learnt many things from you sir from past few months. Thanks for your continues support & educating us.

And for few people here I will suggest “don’t only read stock selection but there are something written in bold too.”

Ravi kumar August 29, 2018 at 11:04 pm

Sir, This being my 1st month and looking hurts..but in the past my other methods resulted in losses..but I have come to believe in your method.
Hope to get back our month in next month series.

Thanks
RAVI KUMAR

admin August 29, 2018 at 11:42 pm

Dear Gaurav,
Thanks for sharing your thoughts.
This month we did not select any banking PUTS. Only Yes Bank Call was selected. The stock touched Rs. 404 , Call went to 12.60 and came tumbling down from there. GAIL almost came into money and then crashed more than 5% in a day.
The same methods which worked in previous 3 months came unstuck this time.
We just have to carry on for the next month. I have been through such situations earlier. Keeping the belief in the methods finally works.
Cheers.
Reply

Gourav Basu August 29, 2018 at 11:15 pm

Deviating a bit from the conventional praises and brick bats and coming to critical analysis a bit. I guess the mistakes which we were making in previous months and in this month as well, is that we are going against the trend of some stocks. For eg. SBI, for the last 2-3 months , we bought PUTS, while it soared higher and higher. This month, we didn’t take any position, but i guess the calls could have made some money. I agree fully with Mr. Pramod that the PSUs are bad businesses/stocks, but then the market is supreme. If the trend is anti of conventional wisdom, why don’t we go with the trend (especially when we are trading in options). The same logic stands good for Reliance Infra/ Reliance Capital and Pharma stocks (for this month). Also, in lack of suitable PUTS from NIFTY 50, less volatile stocks like HERO Motor Corp and Tata Global were tried this month, which hardly yielded any results. Hope Mr. Pramod will keep this in hindsight, before shortlisting trades for the next month. Cheers 🙂

Jatin August 30, 2018 at 1:38 pm

Dear Gourav,

I would not comment upon the PSU banks but what I have personally seen/noticed/traded is that even the less volatile but trending stocks can give a decent return.The only problem with the less volatile stocks is of the liquidity and market in between do give fair chances of exits even in those if your lot size is of 1-2
Reply

Nathan August 29, 2018 at 9:50 am

Good morning Pramod ji and all.
Hope we all will be able to go ahead through this month’s result.
As “There is always another day and another Trade to handle”, let us move ahead.
As I have enrolled myself for a Vipassana Meditation course, I will be missing the initial trades of the next month.
Will be coming back as soon as possible to join with you all for our Learning cum Earning experience.
Best wishes to all !
Vijay August 29, 2018 at 10:13 am

Hello Sir,
I think we are still hopeful of L&TFH. Let us wait and see how it goes. Thank you for your guidance.

-Vijay
- admin August 29, 2018 at 6:57 pm
  
  CALL 190 went up to Rs. 3.10 when the stock went above 189. That was the time to quit. Our BUY was for Rs. 2.60. Those who did not exit, saw it fall back to Rs. 0.65. This is the topsy turvy world of Options.
  
  Cheers.
Manas August 29, 2018 at 10:17 am

Appreciate your time put forth in writing this. This is learning for all of us out there.

Winning and losing is part of game.

Cheers
sathish rajendran August 29, 2018 at 11:16 am

i believe loosing is an essential commodity…
Aditi August 29, 2018 at 5:15 pm

WoooooooooW! Amazing trades sir.

I’ll loan amount from bank and will trade more on your calls.
- admin August 29, 2018 at 6:55 pm
  
  Thanks for the taunting message. It is well deserved for this month. One bad month after 3 great ones would fetch some brick bats. This is life.
  On a sober note, trading should never be done with borrowed money.
  
  Cheers.
Manish August 29, 2018 at 7:46 pm

I don’t think any trader makes money consistently every month. We have seen past profits and we will see them in the future too.
- Rohit Shourya August 29, 2018 at 7:52 pm
  
  I too trust so. Like in July, in spite of the Nifty going higher, most of the profit was made in the Puts. The system works.
Ravi kapoor August 29, 2018 at 8:01 pm

All the trades fail.all money washed. It is my ist month for the trade.how can I believe?.even a single trade is not in profit.some thing is wrong.think again & again.how can I say cheers? .this is the big loss I faced in my life. Thanks for your guidance.
- Vijay August 29, 2018 at 8:28 pm
  
  Dear Ravi Kapoor,
  As promod ji always say you as a trader in options should be prepared to lose all the money that is put into the options. I am not sure if you have followed the previous months trades but prev 3 months was in profit. So, it is part of the game.
  Be positive, look forward for the next month trades.
  
  -Vijay
  - admin August 29, 2018 at 8:36 pm
    
    Dear Vijay,
    
    Thanks for your support. I sincerely believe that people have a right to vent their feelings when things go wrong. This place is meant for sharing your triumphs and disasters both.
    
    Cheers.
    - Jatin August 30, 2018 at 1:29 pm
      
      Dear Sir,
      
      I think I do not think it is wise to vent over because it has been clearly mentioned that these trades are for the educational purposes and any loss/profit arising after taking these trades solely belongs to the individual and as per my understanding nobody has been forced to take these trades so it is no justified to cry over spilt milk.
- admin August 29, 2018 at 8:35 pm
  
  Dear Ravi,
  
  Your concern is genuine. Almost every trade has gone wrong. There were chances in YESBANK and GAIL at some point of time but those chances were not taken. The stocks have shown volatility in the wrong direction or none at all. I know that is no relief for the money lost but there is no option but to try again. I have been personally in such situations many times and it takes one or two months to come out of the losses.
  
  Let us strive to get it back.
  
  Regards
- Divyank August 29, 2018 at 8:36 pm
  
  Ravi Kumar this blog is for learning,he never said to trade on the selections ,you should never bet with your entire money at once. you should analysis yourself when to enter the trade because it is you whose money is at the stake. And most importantly if you are not cool with the fact of losing that money options buying is not the way then.
  P.s.- i have also lost but they were my own decisions and timings.
  Thanks.
  - admin August 29, 2018 at 8:38 pm
    
    Dear Divyank,
    
    Ravi is right in expressing his feelings. In fact he has talked to me also about this. Let us not hurt anyone’s feelings.
    
    Thanks for your positive comments.
    
    Cheers.
Prince Nahata August 29, 2018 at 8:39 pm

Sir please don’t get hurt by negative comments from some readers.I apologize.
Please never stop giving us your valuable guidance.
- admin August 29, 2018 at 8:46 pm
  
  Dear Prince,
  I was telling not to hurt Ravi’s feelings.
  I know how to accept the good with the bad and such expressions are normal.
  Thanks for your support.
  Cheers.
Mahesh August 29, 2018 at 9:08 pm

Tomorrow Idea should provide some relief. Let’s hope idea comes down by 1 or 2 rupees..
SJ August 29, 2018 at 10:23 pm

Even i am in loss but this is also learning for me. I learnt many things from you sir from past few months. Thanks for your continues support & educating us.

And for few people here I will suggest “don’t only read stock selection but there are something written in bold too.”

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.
Ravi kumar August 29, 2018 at 11:04 pm

Sir, This being my 1st month and looking hurts..but in the past my other methods resulted in losses..but I have come to believe in your method.
Hope to get back our month in next month series.

Thanks
RAVI KUMAR
- admin August 29, 2018 at 11:42 pm
  
  Dear Gaurav,
  Thanks for sharing your thoughts.
  This month we did not select any banking PUTS. Only Yes Bank Call was selected. The stock touched Rs. 404 , Call went to 12.60 and came tumbling down from there. GAIL almost came into money and then crashed more than 5% in a day.
  The same methods which worked in previous 3 months came unstuck this time.
  We just have to carry on for the next month. I have been through such situations earlier. Keeping the belief in the methods finally works.
  Cheers.
Gourav Basu August 29, 2018 at 11:15 pm

Deviating a bit from the conventional praises and brick bats and coming to critical analysis a bit. I guess the mistakes which we were making in previous months and in this month as well, is that we are going against the trend of some stocks. For eg. SBI, for the last 2-3 months , we bought PUTS, while it soared higher and higher. This month, we didn’t take any position, but i guess the calls could have made some money. I agree fully with Mr. Pramod that the PSUs are bad businesses/stocks, but then the market is supreme. If the trend is anti of conventional wisdom, why don’t we go with the trend (especially when we are trading in options). The same logic stands good for Reliance Infra/ Reliance Capital and Pharma stocks (for this month). Also, in lack of suitable PUTS from NIFTY 50, less volatile stocks like HERO Motor Corp and Tata Global were tried this month, which hardly yielded any results. Hope Mr. Pramod will keep this in hindsight, before shortlisting trades for the next month. Cheers 🙂
- Jatin August 30, 2018 at 1:38 pm
  
  Dear Gourav,
  
  I would not comment upon the PSU banks but what I have personally seen/noticed/traded is that even the less volatile but trending stocks can give a decent return.The only problem with the less volatile stocks is of the liquidity and market in between do give fair chances of exits even in those if your lot size is of 1-2

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August 2018— Options Buying Once Again — Day 21 and 22