We are now at the end of the week with nothing to show for the 4 days of trading. When NIFTY tanked 205 points on Monday, it was like a wish come true. From Tuesday the nightmare started and our profits were taken away by the sudden turn of events.

NIFTY gained 60 points, 188 points and 53 points respectively over next 3 days to make Monday a distant memory. This is the nature of option trades. Moves in the other direction can hurt very badly.

SUNPHARMA, TATASTEEL and RELINFRA moved lower during the day to raise some hope. But the other trades did not contribute positively and we had to see the little profit being eroded further. M&M PUT 700 was taken at Rs. 7.00 on Wednesday. It was suggested at Rs. 9.00-10.00. But within few minutes of open, it had moved down in price. actually the trade should have been avoided based on the price but making mistakes is something which we normally do. I got it at Rs. 7.00 so that is the price considered for the profit/loss statement.

Today, Asia Markets are in the red and SGX NIFTY too shows a fall of 51 points. If NIFTY ends up negative for the day and some of our stocks too follow that direction, the position will improve.

New Trade:

Time for another sunshine?

Let us hope so.

SUNTV has moved down from Rs. 613 to Rs. 560 level over last one month.

Over last 7 days it has moved down from Rs. 594 to Rs. 560. The recent rally also did not help it much. It is very close to the 52 week low of Rs. 552.85 made on December 11, 2018 before the market had reversed on that day.

PUT 540 at Rs. 9.00-10.00 has a maximum risk of Rs. 10000. ( Lot Size 1000 ). If the current trend in the stock persists, we can see a breach of the 52 week low very soon followed by another good down move. If that does not happen, we know our position.

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.