I had suggested 4 PUTS on Monday morning.
At close of trading on Tuesday ( April 24, 2018 ) NIFTY was 50 points higher.
Like I said earlier suggesting PUTS in a rising market is putting your neck on the chopping block.
The markets are merciful.
They reward the risk takers sometimes.
This is what happened.
1 wrong, 2 right and one unchanged. These are the End Of Day prices.
RELCAPITAL 400 PUT had touched a high of Rs. 5.00 during the day. The stock price had fallen below Rs. 415 and then recovered and the PUT had to get back to the lowly pricing again.
VEDL was the star of the day for these selections. VEDL 300 PUT traded as high as Rs. 12.60 in the initial trades and remained in Rs. 6-8 range for most of the day before ending up at Rs. 3.35 at close.
I had suggested getting out at 4 times the price paid for buying the Option and Rs. 7-8 was quite easily possible.
BHARTI AIRTEL had high premiums throughout the day because of results to be announced after the market hours. Tomorrow the things will be back to normal and price will depend on direction of the stock price.
TATAMOTORS is staying where it was; let us wait and watch over next two days.
One good trade helps in keeping the confidence while waiting.
This is the situation if appropriate exit was taken in VEDL.
For the present, my neck is safe.
Let us see what the market does today.
SBIN 240 PUT for April Expiry looks attractive at 1.65.
Maximum risk is Rs. 4950.
In March Expiry it had made a 52 week low of Rs. 232.35.
Another move towards that point and we have it made.
With the US markets losing about 1.7% on Tuesday and Asian Markets in the red , stage looks set for PUTS to perform.
Only these stocks should not defy the general trend like they did yesterday.
Please keep in mind that the entire amount can be lost. I am just doing my selection exercise in an open forum and sharing. If at all you enter a trade do it in full consciousness that it is your own decision and the risk is entirely yours.
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.