What a day for the markets.
Up, up and away.
For someone with only 1 CALL option and 6 PUT options, the day should have been a torture. It was not.
That is what I keep telling all the time. Options are a very powerful tool of trade. You just need to be right in few trades and you are through.
INFY CALL 700 did it for us yesterday.
Naturally the PUTS will not be contributing on such a big gaining day but at least they did not take out the profit of one good trade.
For us it is now back to positive zone. It is now time not to give away these gains.
If INFY moves up slightly as it is likely, we move out of CALL 700 and BUY CALL 740 or CALL 750. This ensures booking part of the profit and we still are in the trade if the positive momentum continues. Our loss will be reduced if the stock price starts coming down.
HEROMOTOCO PUT 2800 was easily available for Rs. 28.00 in the early trades and it did us no good by moving down to Rs. 19.35 by end of the day.
This was the position yesterday.
Two right, Five wrong and it is back to being profitable.
These posts are meant for teaching. The points being taught are — Selection Process, Trading Psychology and Patience which is the key to profits. If some reader is missing any of these points and just looking at these trades as some quick tips to profitability , then that approach is wrong.
Options Trades are not easy by nature. I am trying to keep it as simple as possible while ensuring that it remains a profitable learning experience. By the grace of God and thanks to the markets the method has shown very good profits over 8 month period.
We expect the same in future as well.
Keep learning, keep earning. Respect the markets, respect the risk. Seek knowledge, there is no quick way to trading success.
We do not add any trade today.
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.
Anand Kumar January 16, 2019 at 9:31 am
Closed Infy @34 and bought 750ce for ₹6.4. Hoping to see momentum continue due to buyback newsReply
vishal agarwal January 16, 2019 at 9:57 am
Sir the learning is great but the only thing is market yet to shower its blessing on my selections.Reply
Varun January 16, 2019 at 1:08 pm
Ashok Leyland 92.5 pe at 1.7. Should we buy?Reply
vishal agarwal January 16, 2019 at 1:12 pm
I bought this PE at 2.7 a few days back Lol!Reply
it went to 3.7 next day now at 1.7 but still holding. The only hope that it is just 2% away from the strike.
Chethan January 16, 2019 at 9:28 pm
I could have waited till expiry, exited early 🙁
This news provably helps infy to move further
srinivas b January 17, 2019 at 7:58 am
sir can we exit infy with decent profit?Reply