It was a strange type of day. Very volatile within a narrow range.
Look at how NIFTY moved.
The sudden crash and recovery were the high points of the day. That is the time when stop losses get triggered if we are day trading in cash segment or futures. Options do lose some value but keep us in the trade. We are not sent packing.
Let us now review the status of 6 trades which were suggested yesterday. It is never easy to enter a ITM option trade. Lot of patience is required even to get into the trade, further more of it is required when getting out of the trade. But it is still better than losing heavily in Futures.
As I had stated earlier, these are not actual trades. We are experimenting with a method. The entry prices are taken on the conservative side meaning that it was possible to enter the trade at these prices. The other price is the last traded price of the same option for the day.
It did not work out well on the first day. I am okay with that. Good results soon after entering the trades are welcome but that does not happen very often.
The loss would have been higher had we traded futures.
Here is the position status:
We do not have to do anything today except watching the movement.
Let us see how these trades work out for the day.
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.