Another negative day for NIFTY.

At one point NIFTY was down 100 points. We were in a real good position then. INFY had stayed up all day. TATASTEEL made a 52 week low once again. M&M had come down to Rs. 714.30. BHARATFORG was down.

Life appeared to be very good.

Then the usual happened. Market reversed to a considerable extent. Options are notorious for losing value quickly. They lost value quickly.

Only bright spot was that we had only 1 right trade out of 6 a day earlier. That status changed to 2 out of 6 yesterday. Good progress.

It does not inspire much confidence when we have not seen or booked a profit after 12 days of trading. Slow cooking adding to taste is fine but we live in the times of fast food.

A small loss which may turn into profit or the loss may get bigger. Do we not live with this situation everyday? This is the life of an option buyer.

New Trades :

Automobiles is the currently weak sector in the market. We are already having M&M in our traded stock options. It is time to add another one to the list. We missed ASHOKLEY earlier.

HEROMOTOCO ticks all the boxes of 30 day weakness, 7 day weakness and number of contracts traded. Only IV ( Implied Volatility) is on the lower side. We take care of that by not gong for a far away strike.

PUT 2800 @ Rs. 28-30 would be my trade here. If the stock opens higher ( CMP Rs. 2865), we can buy for Rs. 25-26 also. Lot Size is 200 and maximum risk is Rs. 6000.

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.