Another very volatile day for the indices.

A good day for our trades.

NTPC finally gave us the chance to book the profit we were looking for. Trades were closed early in the day. As the stock price kept going lower, any time would have been good.

We have been extremely lucky with this series so far.

A profit could be booked in every set of trades initiated. We know such a streak is impossible to sustain. Sooner or later we shall face few losses. That is inevitable but we look for overall profitability.

The other two trades too are doing fine and status at close was like this:

We shall look for a profit of about Rs. 3000 in these trades to exit.

New Trade:

Few days ago, we could not take a trade in ITC as the stock opened about 3% higher and our expected credit could not be achieved.

We try once again today.

ITC Trades:

Buy CALL 165 @ Rs. 6.60

Sell CALL 167.5 @ Rs. 5.30

Sell CALL 175 @ Rs. 2.70

Credit —- Rs. 1.40 i.e. Rs. 4480

The set up will be profitable if the stock price stays lower than the current level. If the price moves up, it will stay profitable up to Rs. 177.50.

Corrective action may be required if the trend suddenly changes.

This will be the only trade for the day.

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.