Welcome to Monday Morning.
Let us have a look at what the index did over the week.
An up move of 112 points in 5 trading days. One day of negative close on Monday was followed by a big gain of 147 points on Tuesday and small gains on the three following days.
We are trading stock options which perform differently from NIFTY at times.
We were at this position on Friday, January 11, 2019:
And we are at this position on Friday, January 18, 2019 :
The week has been very good for us. We now have booked profit in INFY CALL 700 and are in the trade with CALL 740. SUNPHARMA PUT 380 came into the money on Friday and touched a high of Rs. 24.00 before ending the day at Rs. 11.55. With controversy surrounding the stock, we may again see lower levels. TATASTEEL has given up some of the profit during the week but is still a profitable trade.
With 4 days of positive NIFTY close, it will not be out of place to expect a day or two of negative close. That should do the trick for us.
New Trades for the day :
EICHERMOT ( Eicher Motors Ltd) has lost 15.65% over last 30 days. It is slightly negative over last 7 days too. It had made a 52 week low at Rs. 19755 on January 09, 2019. This is less than 3% away from the Friday closing price.
PUT 20000 @ Rs. 320-340 can be rewarding if the sectoral weakness continues. Lot size is 25. Maximum risk is Rs. 8500.
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.