Another flat day for the NIFTY. It closed higher by just 7 points.
Though the Index was flat, there were big moves in NIFTY stocks, some gaining very big and some losing in a big way. One of our selections was among the big losers. SUNPHARMA was down 7.55% on the back of the news that SEBI has reopened an inquiry into a previously settled case of insider trading. There were some corporate governance issues too. In the evening there was a Conference Call by the management for clarity on the issues. Generally there is no smoke without fire. Let us see where this finally leads to. For the day, SUNPHARMA PUT 450 did well for us.
Other trades did not go well except the new trade in TITAN CALL 980.
It is early days in the game and we should not be hurrying into the trades. More opportunities will come.
This is the status of the current trades.
In two days we have taken 5 trades. Let us wait and watch today. Market has been going up for 6 trading days continuously. It is time for a slight fall in Index. It may happen today or it may happen later but markets do not keep moving up everyday. We shall be watching for the trend and then decide about more trades to be taken.
SGX NIFTY is down by about 20 points but we have seen in the past that it does not matter much.
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.
Comments
Anand Kumar December 4, 2018 at 8:47 am
Sir,
Could you please clarify, why INFY was suggested for the trade? After Pune’s training, I checked why the trades were suggested as per the method you explained. All trades met the criteria, except INFY. It was going up in last 7 days before the trade was suggested.
So unable to correlate the reasons behind it
Replyadmin December 4, 2018 at 8:54 am
It did not meet the selection criteria. But the reason for the trade has been given in the post. We can go wrong with any reason whether it is right or wrong.
Cheers.
ReplyChirag December 4, 2018 at 9:11 am
its was with relation to USDINR….since INR was appreciating……it could make sense to try put in INFY
Replyvishal agarwal December 4, 2018 at 10:17 am
Sir,
ReplySunpharma PE450 could not be taken earlier but still it fits the criteria and the 52w low of 435 is a real possibility. PE 430 is trading around 10. Would you advise to enter it now from risk reward perspective.
Thanks
Laks December 4, 2018 at 10:38 am
can we this trade?
Position IV Delta Theta Gamma Vega
Reply+1x 27DEC2018 1780PE 27.9 -33.52 -88.6 0.28 167.39
-1x 27DEC2018 1740PE 28.89 23.41 79.32 -0.23 -140.86
Positional Greeks -10.11 -9.28 0.05 26.53
admin December 4, 2018 at 12:22 pm
I have full regard for the option greeks. Only I have never seen anybody making significant profit from all those theories. My aim is to keep the trading simple and free of jargon.
ReplyThere are man other sites talking about technicals and greeks. Here we want to stay free for them.
Thanks for your comments and views.
Pravin December 4, 2018 at 2:26 pm
Should we take Yes Bank put option?
ReplyAs the delivery percentage is very low for continuious few days.
admin December 4, 2018 at 11:23 pm
YesBank Options are trading at an Implied Volatility in the 90 range. Premiums are high. There is every chance that even the best thought out trade goes wrong. In such a situation loss will be high. Let us see the confirmation of the trend first.
Cheers.
ReplyRavi kumar December 4, 2018 at 8:57 pm
News of S&P rate cut on TaMo.. lets watch it tommor
Reply