For us December is coming to a close. We have today and tomorrow to make or break. Most likely it is going to be a break. On Monday, NIFTY gave up another 90 points.
Markets are now almost 200 points lower than November Expiry. No good for us. It is not too little but too late. Our PUT positions are so far out of money that this 90 point decline did not bring any cheer. Rather it took away another significant chunk of the small capital deployed in this month’s options.
This was the position at the end of day on December 24.
Yesterday most of the world markets were closed except Japan, Indonesia, China. Japan ended up 5% lower but our markets are never affected by moves in Japan. US Markets made another 52 week low on Christmas Eve. That should reflect to some extent in our markets today. At some point today, NIFTY may see levels slightly below 10600. It is likely but then markets have a mind of their own.
Coming to Christmas Eve and Christmas, I express my thanks to the readers who sent me birthday wishes through the comments on these pages, e mails or phone calls. It was heartening to note that the readers have taken note of the day. Once again my thanks.
It is always tough to think of a trade when already looking at a loss. But we are traders. Let us keep doing our job.
JSWSTEEL is one among the losing stocks this month. If the weak trend in metal stocks holds, this stock may go below 280 level. We take a very small risk and go for PUT 280 at Rs. 0.50-1.00 depending on how the price opens. Lot Size is 1500 so the maximum risk is Rs. 1500.
Got delayed in writing this post. It is already pre open time.
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.