Yesterday, NIFTY showed a lot of strength while moving up by 110 points.

We had two sets of trades in this series. Both ONGC and ITC closed higher. That did not matter. We got the opportunity to book profits in both sets of trades.


The outcome of these trades:

With these two trades closed, our score in this series is now 14 out of 14.

For the October series, it is 11 out of 11.

This rate of success makes me afraid. It is time we shall see a few losing trades. Before that happens, let us just be happy with whatever success is achieved.

New Trade:

We are having no trades presently. Today we will look for a trade in RELIANCE Call spreads. This set up will require a higher margin, so we go for only 1 set of trades.

Buy RELIANCE 2180 CALL @ Rs. 70.00

Sell RELIANCE 2200 CALL @ Rs. 60.00

Sell RELIANCE 2280 CALL @ Rs. 26.00

Credit — 16 points i.e. Rs. 8080

Profitable below Rs. 2180 and profitable up to Rs. 2300.

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.