NIFTY made a fantastic up move yesterday.

It kept on moving up steadily all day. The rally was supported by all sectors. There were 46 gainers and just 4 losers in the NIFTY 50.

As far as our Buy Strength Sell Weakness trades are concerned, the day made almost no difference. YESBANK added a little profit, IBULHSGFIN recovered some of the earlier loss. All other trades lost a little more and we are still with a loss of about Rs. 36000-37000.

We had decided to review and act after 5 trading days.

We look at Top 3 Gainers over 30 day period once again based on Yesterday close.

YESBANK and INFRATEL are still holding their position. So we stay in these trades. We get out of IBULHSGFIN at yesterday’s price.

Add SUNPHARMA CALL 420 @ Rs. 35.00 in place of IBULHSGFIN CALL 780.

A look at the top 10 losers shows this:

EICHERMOT is still there whereas DRREDDY and HINDALCO have moved away from that status.

We stay with EICHERMOT and get out of HINDALCO and DRREDDY.

Add HEROMOTOCO PUT 3000 @ Rs. 110 and TATASTEEL PUT 500 @ Rs. 26.00 in place of the two exited PUTS.

This was the status as of close on January 15, 2019:

As already stated this is a method which is being tested. Readers are advised not to take unnecessary risks with these trades.

I understand that it is not easy to buy and trade deep ITM options like these but by way of abundant caution would like to advise not to take these trades.

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.