We had selected COALINDIA trade for CALL spreads on Friday as the stock was making 52 week lows.

On Friday, it recovered from the lows and kept moving up yesterday.

I had stated yesterday that it was time to start worrying a bit after 8 successive profitable trades. COALINDIA gave us enough cause for worry.

Status after two days of set up is :

Mark to market profit of Rs. 1295 from the previous day has vanished completely. The trades have every chance to be successful. We stay with them.

The new set up was done in TCS PUT spread yesterday.

As the day began, TCS moved down sharply. Buying trade was done first and as the sell trades were being executed, TCS kept falling. This move helped us in getting better price for the sold options. We got more initial credit than we had expected.

The stock price recovered towards the end of the day and erased all the down move. It was good for our set up and the position at end of day looked like this:

Mark to market profit of nearly Rs. 4000 on the day of set up is good result. Let us see how it pans out today.

For the day, we stay with these two trades.

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.