Monday.

The new week begins for traders. With renewed hopes and a sense of anticipation. There are 4 days left to Expiry of Option Contracts. Money will be made or lost in these 4 days. Making money or losing it happens all the time but the action is thick and fast close to expiry. It is those few days when fear becomes the ruling emotion and greed takes  the back seat for a while.

It need not be so.

Trades will actually go in the way market wants them to go. There is no need to get out of trades that are doing well unless they show some obvious sign of going wrong.

We are into PUTS only.

We can move to next lower strike. Or we can buy the protective calls in a trade that has gone too well so far. The aim would be to protect the profit while still waiting for more.

News About UPL :

There was a big acquisition news about UPL on late Friday. We do not know whether the fall from 700 levels to 540 levels over last one month ( since Mid June ) is the effect of this information which the company circles must be knowing. Today the stock can go either way. I will be happy if it moves down. Let us wait with fingers crossed.

Market opening looks like flat.

But these SGX indications have been terribly wrong in the past. No one can guess what the NIFTY will do on any particular day.

Our Trades :

We shall wait with all the current trades.

Will protect them with suitable action as mentioned earlier in this post. And keep expecting more profit. Finally it is for the market to oblige.

Expiry Trades :

We shall look for few small trades for July Expiry with 4 days remaining. More trades can be added over next 3 days to utilize the volatility of this period.

Dr. Reddy Laboratories : 

If a good down move happens things can work out well in DRL.  PUT 1950 at Rs. 15.00 has a risk of Rs. 3750 ( Lot Size 250 ) looks to be good reward to risk equation.

Let us hope that this works out along with all the earlier trades.

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.