Tuesday, June 04, 2018.
Another volatile day. Ended lower by 35 points. NIFTY is now at 10593.15.
Let us review our trades.
First the wrong ones.
Worst of the lot happened to be KPIT which we entered only a day ago. PUT 320 has already lost more than 60% value.
VEDL ( VEDANTA) stock ended lower for the day but the PUT 230 lost some value. This happens sometime. We just live with it and hope that volatility in VEDL options increases and consequently premium becomes better. And the price should move lower. Asking for too much– what is the harm?
SBIN was flat and lost a little bit. So was PNB and gained a little.
INDUSINDBK and M&M our choices for buying CALLS again had a bad day and caused some additional loss.
Now the good news:
BHEL is rocking as one of the readers has put in the COMMENTS. Yesterday I had wondered if and when it will make a new 52 week low. It did not disappoint us and obliged today. PUT 75 traded at a high of Rs. 4.60 today before finally settling at Rs. 3.90. Will the downward momentum continue? Will it go below Rs. 70?
I do not know and nobody else does. Otherwise they would have recommended SELL at Rs. 83 when I suggested PUT 75.
We can move out of PUT 75 and BUY PUT 70 instead. This way, part of the profit gets booked and we stay in the trade in case down trend continues.
RELCAPITAL : Stock Price moved down purposefully today and the low of the day was Rs. 381.45. It settled at Rs. 387. PUT 400 had touched a high of Rs. 29.50 before ending up at Rs. 23.10. Far better status than yesterday. I do not know where the stock will go from here, but I am surely looking for a move towards the low of s. 363.90 made on May 16, 2018. Wishful thinking?
Let market do something for poor Option Buyers too once in a while.
BHARTIAIRTEL : This stock made me happy as well as unhappy. It moved to the low point of the day at Rs. 357.55. From there, the previous 52 week low of Rs. 351.60 was just at handshaking distance. It reversed from the low. Stayed at 361 level for more than one hour and in the last hour moved up to Rs. 364. Still, considerably lower than yesterday and we do not and can not argue with what the market does.
Naturally, PUT 360 did well.
These 3 Options helped us in staying afloat profitably.
Here is the result:
With just 3 trading days gone so far, the result is quite satisfactory.
New Additions :
I have once again looked at the F&O stocks, their movements and trends. volatility etc. There are quite a few trades which could be initiated but we are already n 9 trades and every trade costs money.
And as I like to say, these trades have as much of a chance of making money as any other new trade would have.
For another day, let us stay with these nine.
I would request the readers to please share the posts with fellow traders ( Tough task, most of the traders are lonely people, they do not share the trades even with their spouses) and write about your own selections in the COMMENTS section.
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.