January 2019— Options Buying Continued

Welcome to Monday morning.

We are into the last week of January 2019 Expiry. There are 4 days left to conclude our trades and hopefully we should be able to do it profitably.

We saw NIFTY moving high in the early trades and then go down sharply on Friday.

NIFTY has gained just about 1 point in 21 days since December Expiry on December 27, 2018. Considering that the Index has been absolutely flat , our trades have done reasonably well so far, ZEEL PUT 420 being the star performer.

The position at close on Friday was:

The first thing to be done is to exit ZEEL PUT 420 and enter PUT 300. That way we get some profit and stay in the trade for some more gains if the negative trend continues.

We shall book profit in TATASTEEL PUT 480 too around Rs. 30 levels and move to PUT 450.

In HEROMOTOCO we get out at current levels ( Rs. 140-145 ) and enter PUT 2600.

This is one of the ways of protecting profit as reversals can be very damaging at this stage with little time left to expiry.

New Trades :

For last one week or so, NBFC companies are losing ground. It is time to look at L&TFH.

This stock is a loser over 30 days as well as 7 day period. Last traded price was Rs. 134.75.

PUT 130 @ Rs. 0.90 – 1.05 can turn to be a good option if the trend persists. Otherwise we lose Rs. 4725 as the lot size is 4500.

SGX NIFTY :

Asia Markets are down from the highs. SGX NIFTY was up 50 points a few minutes ago and is now up 19 points. It appears that we are in for a lot of volatility once again.

Stay alert with your trades.

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

Apurv Adarsh January 28, 2019 at 10:17 am

Sir,

How does Rilinfra put look for Feb expiry?
Down weekly as well as monthly

Tharik January 28, 2019 at 12:47 pm

Booked M&M 700 PE @25. Bought 670 PE @7
Not sure if this is the right decision. But saving some bucks for the next month to take trades as well to reduce the risk of reversal.

Antony Revinson January 28, 2019 at 2:21 pm

Sir,

Can you please guide us how did you decide the entry price as Rs. 0.90 – 1.05 for L&TFH based on previous movement as stated below.

Date Open High Low Close Settle Price
25-Jan-2019 0.50 2.05 0.40 1.40 1.40

Regards
Antony

admin January 28, 2019 at 7:34 pm

The answer is given in your question. I would have suggested previous day close price but market was expected to open higher, so a slightly lower price wa suggested . some readers got this price,some did not.
cheers.
Reply

Apurv Adarsh January 28, 2019 at 10:17 am

Sir,

How does Rilinfra put look for Feb expiry?
Down weekly as well as monthly
Tharik January 28, 2019 at 12:47 pm

Booked M&M 700 PE @25. Bought 670 PE @7
Not sure if this is the right decision. But saving some bucks for the next month to take trades as well to reduce the risk of reversal.
Antony Revinson January 28, 2019 at 2:21 pm

Sir,

Can you please guide us how did you decide the entry price as Rs. 0.90 – 1.05 for L&TFH based on previous movement as stated below.

Date Open High Low Close Settle Price
25-Jan-2019 0.50 2.05 0.40 1.40 1.40

Regards
Antony
- admin January 28, 2019 at 7:34 pm
  
  The answer is given in your question. I would have suggested previous day close price but market was expected to open higher, so a slightly lower price wa suggested . some readers got this price,some did not.
  cheers.

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