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.