Yesterday, I was at Pune interacting with the participants of the F&O Workshop held there. It was a lively interactive session with questions flying thick and fast.
Next such session is at Bangalore on December 16, 2018.
Coming back to the trades in December Expiry, the three trades suggested on Friday were taken at the following prices.
INFY PUT 620 at Rs. 6.00
SUNPHARMA PUT 450 at Rs. 8.00
RELCAPITAL PUT 210 at Rs. 7.00
The first two had gone wrong slightly by end of day whereas RELCAPITAL stock price was down and the PUT 210 gained in value slightly. A flat first day for us like it was for the NIFTY Index.
For today, the indications are for a strong opening as the Asian Markets are high in a big way. So is SGX NIFTY which is up 65 points.
Trades for Today :
We have taken 3 PUTS yesterday.
With markets likely to open higher we may see some erosion in value there. Prudent thing would be to wait and watch.
As far as new trades are concerned, TATAMOTORS continues to be weak month after month. With vehicle sales going down this month, it may see a further decline.
PUT 160 ( about 5-6% away from the current stock price ) is priced at Rs. 4.40 on Friday prices, With a slighly positive opening for the stock, we may get this PUT for Rs. 4.00. If the stock opens down, I would go up to Rs. 5.00.
TATAMOTORS PUT 160 at Rs. 4.00-5.00 is my likely trade for the day based on our selection method. Maximum risk is capped at Rs. 7500.
TITAN is doing well over last 30 day period as well as 7 day period.
Current price is Rs. 930. As the volatility is not very high in this stock, we go for a Strike 5% away and consider CALL 980 at Rs. 13.00 -15.00.
If the price stays above Rs. 15.00, I am not taking a chance today. Maximum risk is Rs. 11750 lot size being 750.
That sums up the trades 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.
Comments
Manoj December 3, 2018 at 9:24 am
Thanks for your recommendation. I booked a 18000 profit in the sun pharma put today. Good call.
ReplySiva December 3, 2018 at 9:39 am
Is it a good idea to book profit and buy a lower put today?
ReplyChirag December 3, 2018 at 11:37 am
“its time to change the prescription”……hahaha,,,,,,,,and that change did work for us…..taking trade on Friday and be in profit on Monday are the rare events which options buyers look for …….its was a good trade to start the December series
ReplyTharik December 3, 2018 at 12:40 pm
Unlucky for me as I missed out Sunpharma trade. Took PNB 65 PE and Hindpetro 220 PE at 1.9 and 7 Rs respectively
ReplyKV Rao December 3, 2018 at 2:30 pm
I would say Sun Pharma is a Jackpot Trade.
Replyadmin December 3, 2018 at 8:46 pm
It is a lucky trade. We do not know yet which way it goes from here. Unless it breaches the previous 52 week low, it does not become a good trade. Jackpot trade was HINDPETRO PUT 240 in October series. The stock had moved down from 250 to 190 in a matter of minutes and then to 164 next day.
ReplyJackpots are rare. We are lucky to strike one at that time.
Cheers.
Saket December 3, 2018 at 7:36 pm
Exited SUNPHARMA at Rs. 21 (bought at 8). Not sure whether it was the right decision 🙁 Haven’t entered the lower strike yet due to higher premiums. Pramod-ji, can we consider MARUTI CE 8000/8100 ? Also, can we consider LUPIN CE 960/980 ?
Replyadmin December 3, 2018 at 8:49 pm
Whether the decision was good or bad, it is done now. You did a good trade, made some money. Regarding the CALLS being considered by you, the criteria is already defined. If the trade meets the parameters go for it.
ReplyCheers.
Madan December 3, 2018 at 7:43 pm
Why to exit Sunpharma Puts
Replyadmin December 3, 2018 at 8:50 pm
Is it why to exit or when to exit?
ReplyMadan December 3, 2018 at 9:11 pm
Why to exit when, it does does not meet our exit criteria?
ReplyManoj December 3, 2018 at 10:41 pm
I bought SUNPHARMA put at 11 and sold at 28. Lucky to have taken it.
ReplyDinesh December 4, 2018 at 10:22 am
Those who have already booked profits in Sunpharma will never ever make money in trading if you guys continue trading this way. We are buying options here, so that we can always be in trade, as we know the maximum money we will loose if & when we’re wrong.
This is just my opinion.
Replyadmin December 4, 2018 at 12:26 pm
Almost my sentiment but let us not express it so strongly. It is a learning curve for most of the readers. Waiting in profit is actually more difficult than waiting in a loss. It has to be learnt. And people are always afraid of reversals which happen all too frequently.
Cheers.
Reply