After the weekend, we were back to business on Monday morning. NIFTY continued its decline and moved below 10900 levels.
Just a few days ago the talk on business channels was about a target of NIFTY 11500. Suddenly those talks have turned around to 10500 levels. No one knows where the market is headed but the talk is free and it is plentiful. We also add our two bits to this useless talks from time to time.
The day was good for us but not too good. It was sort of a mixed bag.
M&M made the new 52 week low at Rs. 645.20 and closed slightly higher. When quarterly results came in the experts were suggesting a BUY with targets of Rs. 750. I will not be surprised to see them giving SELL calls now with targets of 620.
Let us not get elated to soon. We have a long way to go before money is made. If the stock really moves to Rs. 620 level, that would be the time to exit the trade and move to a lower strike.
IDEA did what it does. It remained volatile without hurting us. In the last 30 minutes the stock price suddenly shot up to Rs. 32.00 and as quickly came back to Rs. 31.00. One Rupee in case of IDEA is a 3% move.
The new trades suggested yesterday were LT 1200 PUT and BHEL 60 PUT. In the early trades it looked like that we missed these trades as the stocks opened low and moved lower. Suddenly both these stocks moved up and our trades went through. Both of them were minor losers at the end of the day. But we are in the trades now.
HINDPETRO flattered to deceive. The stock moved down to Rs. 224 level in the early trading and then moved into positive territory to mock us.
This is the position on close yesterday.
The loss has come down from Friday. Still a long way from profit but we are in with a chance.
New Trades for today :
This is Day 08 of February Expiry and we are already in 7 trades. Let us stay light and sit tight for the present.
No new trades for the day.
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
Tharik February 12, 2019 at 9:24 am
Got L&T 1220PE @13 today.
Replyarnab February 13, 2019 at 6:47 am
On my trading system, sell call was generated on 4th Jan when LT was at 1401,low 1373, ideally one should have entered at around 1370 levels, that being said, i didnt enter, but on my system its still a sell call, but the chart on 11th Feb signals a bounce back, personally I wouldn’t enter at this time
Replyadmin February 13, 2019 at 7:42 am
Thanks for sharing your thoughts. At this blog we do not care for charts and the signals they generate. We have done very well without them so far. Keeping it simple is the motto here along with making money.
ReplyCheers.
Shubham February 12, 2019 at 10:47 am
Sir,
ReplyI have bought L&T Put 1200 at 11 rs. Can you please advise if it is a good buy to hold till expity?
admin February 12, 2019 at 10:51 am
Dear Shubham,
ReplyYou have just entered the trade. Why start worrying so soon. In worst case you lose around Rs. 4000.Let the market decide whether the trade is good or bad.
Cheers.
M Kithan February 12, 2019 at 12:59 pm
Sir…What are your thoughts on buying Puts of weak stocks prior to a Quarterly result? How has been your experience if you do buy it before results and holding them till the results are declared..
Replymonu February 12, 2019 at 2:12 pm
Missed the IDEA put hence loss is too much now. last month read the blog only, this month taking trade and loss is mounting pressure.
Replyadmin February 12, 2019 at 3:36 pm
Option Buyer can not have too much loss unless trading beyond your financial capacity. Maximum loss for each trade is known when we enter th trade. Some trades and sometime all trades can go wrong.
If we can not bear the heat we should not enter the kitchen.
And remember, the trades can turn around any time.
Cheers.
ReplyShubham February 13, 2019 at 2:58 pm
Dear Sir,
Following your advise for the first time I held the option position overnight, and it turned out to be a good decision. I has bought LT PE 1200 @11.10 and sold today for 16.50 making a great amount of profit.
Thanks a lot for your advise.
Shubham.
Replyadmin February 13, 2019 at 3:38 pm
Dear Shubham.
Congratulations on your profit. But every regular reader of this site will tell you that it is not the type of profit we look for. AtRs. 11.10, your maximum risk is around Rs. 4000. Trade was going in your direction. What was the great hurry to get out?
Should have waited with it.
Cheers.
Reply