We had another good day on Friday.
Friday is over. The following weekend is over. Wimbledon Final is over with Novak Djokovic winning it a fourth time. Football World Cup is over with the France holding the cup of soccer supremacy once again.
Back to the humdrum of trading life again.
What to expect today ? :
I wish I knew.
NIFTY has run up about 430 points since June Expiry. Sensex is near all time high. All seems poised for another step forward. But when did the markets move in such a straightforward fashion. There are bound to be twists and turns and our trades will prosper or suffer based on these moves.
Let us be prepared for any setbacks while expecting the trades to do well.
We are now out of UPL 600 PUT at Rs. 42.00.
This trade will no longer be considered part of further exercise.
BHEL made new 52 week low on Friday. If the market sentiment is slightly negative, we may see a good down move here that should give a boost to out PUT 67.5.
BHARTIAIRTEL is moving slightly lower almost daily. But a good down move has not come so far. I am waiting for this stock to go below its recent 52 week low of Rs. 351.60. I wish it would go there quickly.
While expecting these two and RELCAPITAL to do better, there are hopes from other trades too.
Hopes can be met and hopes can be dashed. It is for the market to do.
Our job is to keep looking for opportunities.
Once again it is HINDPETRO.
It remains week. Crude Oil was strong in US Market on Friday. When Crude Oil is strong, HINDPETRO and other oil marketing companies are down. This has been happening for quite some time now and may happen again.
PUT 260 at about Rs. 4.80-5.20 can be a good choice. If the stock moves quickly towards its recent low ( Rs. 250.60 ), the risk to reward ratio will be very decent.
This would add another PUT to our list of trades.
We are now into following trades:
BHARTIAIRTEL —- PUT 360
BHEL —————– PUT 67.5
HINDALCO ———- PUT 210
ICICIBANK ———- PUT 260
PNB ——————- PUT 70
RELCAPITAL ——– PUT 360
SBIN —————— PUT 240
TATAMOTORS —— PUT 250
If the HINDPETRO trade materializes today, then we shall be monitoring 9 PUT trades. We are having our hands full.
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
Prince Nahata July 16, 2018 at 11:37 am
It’s really tough to stay in profitable trade as compared to losing trade.Hard to resist the temptation of booking notional profit .Today I am having notional profit of around ₹70/80K odd in JISLJALEQS,Bhel,Airtel,Relcapital & other puts all suggested by Pramod Sir.
Replyadmin July 16, 2018 at 3:58 pm
Dear Prince,
ReplyI hope you kept patience.
Happy trading.
Prince Nahata July 16, 2018 at 6:58 pm
Yes Sir I did not square off any put today.I added Ashok Leyland jul 125 PE @2 in the morning today which had moved to ₹5.55 at closing.Tomorrow is Result day.I hope it moves down further
ReplyNiloy Roy July 16, 2018 at 11:52 am
Dear Sir,
Can you provide details of your Bangalore workshop in August ? I had mailed a couple of times but did not get any confirmation
Thanks
ReplyAshish Agrawal July 16, 2018 at 3:38 pm
Sir,
I have exited RELCAPITAL 360 PE at 26..since i entered at around 6 i thought this is a reasonable profit. Do you still see it falling further? Should i enter a lower put maybe 350 or 340 PE? Please suggest.
Replyadmin July 16, 2018 at 3:57 pm
Dear Ashish,
ReplyYou have shown commendable patience to stay in the trade till 26.00
It seems my advice of being patient in good trades is working.
Congratulations on a good trade.
If we have to go for a lower strike, it shall be 330 or even 320.
Saket July 16, 2018 at 3:47 pm
What a day! 4 out of our 9 stocks hit 52-week low making our portfolio enviable…The only thing that was missing on my part was patience (once again!). Got out of RELCAPITAL too early at 21 and BHEL at 4. Thank you Pramod-ji for your simple yet powerful technique of picking the stocks for options trading! I wish you could guide us on increasing patience 🙂
Replyadmin July 16, 2018 at 3:54 pm
A really very good day.
ReplyRelcapital, Tata Motors, Bhel, Bharti Airtel made new 52 week lows.
Other banking stocks too moved lower
Bhel exit at 4.00 is very good.
Relcapital at 21.00 is also okay. Nobody knew it will just crash at the end of day.
Congratulations on the good trades.
Reshmi P R July 16, 2018 at 4:24 pm
Sir, I kept exiting Rel Capital, BHEL, Airtel when my profits crossed 10k/15k range. Then I bought lower PEs of these stocks. I earned 26k profit in rel capital and bought 330pe for 18k which is at a profit of 3k now. Is it fine to move forward with this started so that some capital protection is ensured.
ReplyJayesh July 16, 2018 at 4:24 pm
Hello sir,
ReplyI was confused whether to exit in rel cap or hold with patience then I choose the latter one.
I know falling 9% in intraday is quite rare and I could have encashed with decent profit but holding with the expectation of some more downfall.
Let us know your view and what is the best possible solution to this tricky situation.
Madan Mohan July 16, 2018 at 6:47 pm
It seems we are going to make a decent profit this month.
Reply