Another day gone.

Time and tide wait for no one. And there is no one other than the buyer of options who faces the full impact of time moving  away day by day eating away the premiums.

We saw the day trading in a narrow range till NIFTY  made a decisive down move.

M&M made yet another 52 week low at Rs. 644.00.

IDEA too moved down to Rs. 29.60. It is now less than 5% away from the 52 week low of Rs. 28.45.

BHEL too moved down though PUT 60 did not gain anything.

LT too remained in a range.

ZEEL went bad and so did HINDPETRO which moved to the low point of the day just before close. It may do well today.

Overall, our trades did not benefit from the NIFTY down move. We can not do anything about it. Let the market decide about our reward.

This is the status at close on Tuesday:

It is slightly worse than previous day but better than last Friday. We still have 12 days of trading and expect to do well.

New Trade for the day :

To select a new trade is always a dilemma. We have to see our present position, time left to expiry and general market conditions. In addition the selected trade is to be checked for various defined parameters.

We already have 7 trades and only 2 of them are doing well so far.

One of our good trades last month was HEROMOTOCORP.

It is down over 30 days as well as down over 7 days. Closing Price on Tuesday was Rs. 2799.95 and the 52 week low is at Rs. 2561.00.

Market is likely to open higher. There may be an initial up move. Let us not be in a hurry to take the trade. Wait for the opportunity.

We go for PUT 2700 @ Rs. 26-30. Lot Size 200, Maximum Risk Rs. 6000.


US Markets closed higher. SGX NIFTY is trading 30 points higher. We are in for some pain today unless 2-3 of our trades maintain their downward trend. So brace yourself and enjoy the ride.

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.