The first day after June Expiry was an emphatically positive day.
NIFTY was up by 125 points. A real big move after two days of being down. But still we are going nowhere. And I do not care.
Like I said earlier, we are more interested in what our stocks do. If they do what we want unmindful of NIFTY moves, we are okay with that.
While we are talking about NIFTY let me add one observation. I may prove right or go wrong but it is necessary to share this observation.
Here is the list of Top 5 Gainers and Losers in NIFTY stocks on the day it gained 125 points.
In the Top Gainers, we do not see any of the 5 top weighted stocks.
Similarly in the Top Losers also, none of the 5 top weighted are seen.
Absence of the big shots from the Top Gainers suggests that heavy weights are not participating in the rally. If that happens to be true, then there may not be much upside left.
If these stocks too join the rally, then we may see our PUT trades going wrong.
For me the message from this data is that we may remain range bound for a while.
Enough technicalities. Let us cut the crap and get down to the business.
Friday did not go well and we start the July Expiry Trades on the back foot.
All the 3 mentioned trades were available in the price range suggested. At the end of day, they were lower than the buy price. It happens. We live to wait and fight another day or another week.
The trades were taken at the following prices for the purpose of keeping record.
I am taking these prices from one of the comments. My trading prices are almost same.
Sir, I bought PNB put 70 at 2.7, ICICI put 260 at 4.40 and Airtel put 360 at 6.8. Also bought NBCC put 70 at 2.2 . Currently at 12k loss,hope to recover as time progresses.
NBCC was not suggested here.
So we take the prices as:
PNB 70 PUT — Rs. 2.70 — It went down to Rs. 1.70.
ICICIBANK 260 PUT — Rs. 4.40 — It closed at Rs. 3.80
BHARTIAIRTEL 360 PUT — Rs. 6.80 — Closed at Rs. 5.70.
BANKNIFTY :
While NIFTY closed near the high point of the day, BANKNIFTY came down considerably from the high point. At one time it went slightly negative also.
INDUSINDBK was the big banking loser. SBIN also came down from the highs.
As we are already into 2 Bank stocks adding another to the list is like putting all eggs in one basket. But seeing weakness and not acting upon it also looks like missing an opportunity.
In June Expiry, SBIN came down from the highs to end up at Rs. 257 but our PUT 250 became worthless.
I expect weakness to continue in SBIN.
Remember the 52 week low of Rs. 232.35 on March 23, 2018 and a repeat of that price on April Expiry day at Rs. 232.50.
There is nothing to suggest that it will not make that journey again.
So SBIN PUT 240 at Rs. 2.00 can be a good option.
And why leave out RELCAPITAL.
It gave us decent profit in June, we may look for some more in July.
RELCAPITAL PUT 360 at Rs. 7.80 can be considered for BUY.
With the addition of these 2 trades, our total trades come to 5.
Let us stay with these 5 for a while.
Keep working, keep learning. 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
kuldeep July 2, 2018 at 9:24 am
Hello sir…how about buying Dish TV Put 70. Reliance Fibre Broadband is going to overshadow their business.
ReplyVijay C July 2, 2018 at 11:09 am
Hello Promod Ji,
Bought 1 lot of PNB PUT at 1.75 on Jun 29th. Missed out on RELCAPITAL. Have you suggested it on 29th. I think I missed it somewhere. Thank you.
Regards,
ReplyVijay
Saket July 2, 2018 at 1:22 pm
RELCAPITAL was suggested in today’s article only. Fantastic selection so far 🙂
Replyadmin July 2, 2018 at 3:43 pm
Thanks Saket for the comments.
Market obliges us in some trades and makes us wait in the others. BANKNIFTY was down but all of our bank PUTS did not work out. Such is the fate of Option Buyers.
We wait for another day.
ReplyNPAHUJA July 2, 2018 at 1:19 pm
Pramod Sir,
ReplyReliance capital PUT 360 -making dhamal.
Regards,
admin July 2, 2018 at 3:42 pm
Dear Mr. Ahuja,
Let us just be thankful to the market for the price action. Today’s low price is Rs. 367.35. We are now just 1% away from the recent 52 week low of Rs. 363.90 made on May 22, 2018. Let us hope it is breached tomorrow.
Cheers.
ReplyDev July 2, 2018 at 8:10 pm
Sir, is the strategy of buying more puts then calls works in negative and sideways markets! Can the strategy be reversed if 2017like rally comes in and how to find that the rally is started?
Replyadmin July 2, 2018 at 8:21 pm
Dear Dev,
First things about the markets is that no one actually knows what it is doing. Everyone was fine with 125 points up move on Friday. Today at one stage 100 points were given back out of that. Then the banks rallied and NIFTY ended down by 57 points.
ReplyWhat had changed for the banks in 3 hours that PNB went up to Rs. 79.75 from Rs. 74.40.
Canara Bank went up to 253 from 241.
And we should not be surprised if they are back to earlier levels in another 2 days. Only problem is by the time our option premium gets eaten away.
But I am taking chance with my Observation of the price patterns.
For half of the session, I was right in every trade.
By end of day, i was right in only 2 of them, but still profitable.
PUTS or CALLS do not matter. They should come right is important.
Cheers.
sonu July 2, 2018 at 8:49 pm
hii sir can u tell me best book for option and futures .
Reply