There was a popular TV Show in the 1990s by the name ZEE Horror Show.
This horror show came visiting on Friday, January 25, 2019 for the ZEEL ( Zee Entertainment Enterprise Limited) and the stock went into a free fall. I would not say that this type of fall was not seen earlier. We saw DHFL crack 50% on September 21, 2018. IBULHSGFIN too had gone down by 35% at one stage on the same day.
There was no inkling in the early trades as to what is in store.
Let us look at the moves during the day.
The price had opened higher, made the high of the day at Rs. 439.35 and then moved down to a low of Rs. 288.30 before recovering towards close. A ferocious fall.
ZEEL PUT 420 :
We had entered this trade many days ago at Rs. 5.00. This was the day of deliverance for this option.
From a low of Rs. 2.50 it moved to a high of Rs. 125.00.
Many of the readers had taken the trade. Some exited early, some waited, a few brave hearts may still be holding. Well, congratulations to all of those who made good with this trade. Let us thank the market for this generous gift and move on to the other trades.
Among other trades TATASTEEL, M&M , RELINFRA made new 52 week lows and closed near the low of the day. BHARATFORG again wasted time while INFY CALL 740 lost money. IDEA PUT 31 came back to the buy price.
The day finally turned out to be like this.
In a single session profit moved from Rs. 20000 to above Rs. 200000, thanks to ZEEL.
This shows us what options can do. It also shows that if we keep up the belief , picking up such trades is possible. We got few good trades in September and now in January.
With 4 days left to expiry we should be able to close this month with good profit even without ZEEL trade.
Enjoy your Sunday and we shall be back on Monday morning for the final four days of January Expiry.
Maybe market has more rewards for us in next few days.
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
vishal agarwal January 27, 2019 at 10:10 am
Simply amazing Sir. Thanks for showing us a way to be profitable in trading which otherwise has been proven time and again that retailers cant make money consistently. Though my profits are not even half of shown here still it is the best expiry so far ever since I started trading. After losing for initial 2 months since I started following methods on this blog, was still trading this month but with less conviction that perhaps there is nothing that could help me make money trading. This resulted in me booking out of good trades early in fear of losing out on notional profits yet again just like last expiry when I was sitting on good profits on elections result day but the massive reversal took away all the profits. Hopefully the hits and misses in this expiry helps in boosting the conviction to stay in the trade patiently.
ReplyRAJESH Y January 27, 2019 at 10:29 am
Sir
ReplyCorrection
Profit from 20,000 to 2,00,000
& INFY 740 CE
admin January 27, 2019 at 10:31 am
Thanks. Corrected.
ReplyRajeev January 27, 2019 at 10:44 am
Sir, will idea fall on tomorrow.?
Replyadmin January 27, 2019 at 11:11 am
When I suggested the trade the expectation was that it will go below Rs. 30 very soon. It went up. On Friday, it came back near the 52 week low of Rs. 32.00 but has still not breached that level.
ReplyI do not know what the likely price direction would be tomorrow. We are in the trade and know our maximum loss. If the market decides to give us a profit, we shall take whatever is given.
Cheers.
Rajeev January 27, 2019 at 3:24 pm
Ok..thank you sir..
ReplyCven January 27, 2019 at 5:51 pm
Sir any plans for workshop in Mumbai in coming months.
ReplyKumar January 27, 2019 at 5:57 pm
Sir are you not recommending to move to a lower strike in ZEEL ?
ReplyAvinash January 27, 2019 at 6:52 pm
You proved again sir…How discipline wins!
ReplyPrince Nahata January 27, 2019 at 7:31 pm
Hahaha!! Zee Horror Show.Your Analyses are interesting to read.Sir,how come you are so creative?
Reply