On Friday, NIFTY decided to take us on a ride. An upward ride. Almost everyone is happy when NIFTY moves up. Faces on TV channels look bright and all smiles as if they made a lot of money. Nothing could be as fake as the feelings associated with the market moving up. Of course when NIFTY goes down, the down faces tell the true version of the story.
This was the status at the end of the day and the week.
A week ago, on Friday the 13th, NIFTY was 11018.90.
Five trading days gone and we are where we were. I do not understand all the song and dance about the NIFTY moves every day.
Who could have made money with this kind of no move? Option Writers only.
We are a different set of people , the option buyers, who are not supposed to make money. This is the consensus of the market players and the conventional wisdom.
We shall see how we fared.
At the close of trading on Friday, July 13 this was our situation.
We were in 8 PUT trades and UPL 600 PUT was considered closed at Rs. 42.00 even though it had traded above Rs. 50 also on Friday.
The profit till July 13 was Rs. 37540.
Heroes and Zeroes :
Five trading days later, NIFTY being down by 7 points in this time frame , we have had some good trades along with the bad.
First the losers :
All the banking stock PUTS have not done well. They are following the pattern of one day up and another day down. Sometime there is too much movement in the day finally to go nowhere.
ICICIBANK had come in the money this week but gave back all the gains. SBIN and PNB too have been disappointing so far.
Another trade selected during the week was HINDPETRO 360 PUT. This was purely a play on Crude Oil prices. As the crude prices moved lower, stock price gained very fast and the PUT came down. Exit was advised at Rs. 3.00 and we take a hit of Rs. 2.00 ( Rs. 3150 ) in this trade.
LUPIN 780 PUT was selected on Thursday. It did well on that day. Stayed in profit for most of the day but ended up losing mildly at the close.
TATA MOTORS also made the new 52 week low. For a while PUT 350 came into profit but we are looking for a big profit which is not coming yet.
Now the gainers :
BHARTI AIRTEL made a low of Rs. 331 in this week and then recovered to Rs. 345 levels. Some of the readers have shared their trade that they exited at Rs. 29.00. Good for them because on Friday it closed near to Rs. 16. Still a gainer over previous week.
RELCAPITAL made a wonderful down move on Monday , July 16. It made the new 52 week low of Rs. 334.30 next day and then started going up. On Friday it went above 350 level. I exited my PUT 360 at Rs. 31.00. For the purpose of record here we take the exit price as Rs. 26.00 on Tuesday.
UPL once again is doing well. After exit from PUT 600 last week, we selected PUT 560 during this week. The Buy Price was Rs. 10.00 on July 18. Immediately next day it went up to Rs. 27 when the stock made its latest 52 week low of Rs. 537.25. At close on Friday, PUT 560 traded for Rs. 18.35. A good gain.
BHEL : We had bought PUT 67.5 right at the beginning of the month. It had lost half its value. Then it came good and on Tuesday , July 17 we have considered this trade closed at Rs. 3.60. Since then it has come down. But we are out of the trade.
The Star Performer :
HINDALCO PUT 210 was our choice on Friday last. It could be bought for Rs. 2.60 on that day. On Friday, July 20, the last trade price is Rs. 15.00 with Rs. 17.05 being the high of the day.
This is how the Profit Chart looks now :
There were total of 12 trades since the beginning of month.
Out of these 3 have been closed by booking profit and 1 is closed by booking loss.
As far as the numbers are concerned as of now 6 trades are right and 6 are wrong. The profit figure at Rs. 122773 is not insignificant considering the fact that all the 12 trades are PUT BUYS and NIFTY has moved up from 10589 to 11010 in these 16 trading days.
With NIFTY gaining 421 points , if we are getting half our PUT trades right and making good money in the market we should be thankful to our selection method and grateful to the market for rewarding us for our belief and patience.
Four Days To Expiry :
We are sitting on some good ITM options and a few which are sitting on the cusp. Time will run out fast now. These 4 days will be the make or break days. We hope that make part will come true. But let us be prepared for things going wrong also.
This shall be discussed in Monday ( July 23 ) post.
Enjoy the weekend.