NIFTY closed just near 10750 yesterday. A loss of 20 points from the previous day.

All through the day it moved in  a range of 60 points.

Basically a directionless day.

BANKNIFTY ended up some 65 points higher. Like I have written earlier BANKNIFTY was under performing for first few days. Now it is making up for the lag. This can be a cause for concern as we are holding 3 PUTS in Banking Stocks.

Our Trades :

First of all one that we missed.

VEDL was mentioned here two days ago. But we could not get that option PUT 220 at our price. The stock has continued to decline even on the days the NIFTY was up 42 and 70 points. Yesterday it made the new 52 week low of Rs. 219. We do not know where will it go from here but our opportunity is missed.

Among those which were not missed, BHEL also made another 52 week low at Rs. 67.60. Our PUT 67.5 is now almost ATM Put. The regular readers will remember that we started with BHEL PUT 80 in May Expiry and now we are into 67.5 PUT. The decline in this stock so far has been sure and steady. For our sake, it should stay that way.

RELCAPITAL ended slightly higher. BHARTIAIRTEL ended lower but the PUT 360 still lost slightly.

Both these Options caused some loss.

The good thing to happen was the performance of the three banking stocks.

SBIN, ICICIBANK and PNB all ended lower than the previous day. They did not contribute to the gains in BNKNIFTY. Good for us.

Our PUTS in these stocks did not go up by too much, but they did not lose money either.

Overall, thanks to BHEL, we ended the day in a better position.

VEDL is just shown. Its P/L is not included.

Another day, another trade :

The market was basically all about RELIANCE, INFY and ITC yesterday. The first two were dragging the NIFTY down while ITC was sustaining it. Do we get into any of these stocks?

I would have at some other point of time. Now I am vary of such flash moves. They can reverse just the next day and we shall be left holding the empty bags.

TATAMOTORS  made a new low yesterday. Later it recovered most of the ground and ended higher but still in the negative. The low was Rs. 252.55.

PUT 250 is around Rs. 4.20. Depending on how the market opens, this PUT may become available for Rs. 4.00-4.50 range.

It is worth taking a chance. With a lot size of 1500, maximum risk is Rs. 6000-6750.

The risk part is our management, all else is left to the markets.

Have a nice trading day.

Stay cautious, stay profitable.

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.