Another day of NIFTY moving up.

Again like on Wednesday, such a big move did nothing for our 3 CALLS.

Really bad but just can not do anything about it.

The 6 PUTS were not supposed to do well in such a situation. So it was a double whammy.

Again the day was about BANKNIFTY.

It moved up and up till it finally relented and gave up all the gains of today. We hope it continues the down momentum tomorrow. Specially in PNB and SBIN and not in SBIN.

This was BANKNIFTY for the day:

But it did little for INDUSINDBK which performed very poorly.

Fell from the highs to end lower. The likes of PNB did not follow that pattern.

We live to fight another day.

SBIN ended lower than yesterday. VEDL went away from us and then came back.


These moves give hope that our trades will work out, occasional bad days notwithstanding. The inherent volatility will ultimately make the Options either go entirely worthless or make few of them come into the money very nicely.

We look for the coming In The Money part.

For the record here is the not so flattering position at the end of day on June 07:

A far cry from the positive image of just two days ago.

That is Options for us. Fortune turns like a wheel. It is time it turned for us.

With SGX NIFTY down, we may see NIFTY also somewhat negative for the day. The day may turn out better than yesterday.

New Trade : It is not easy to think of and suggest a new trade when the performance chart looks as above. But life goes on.

On May 31, 2018 ( May Expiry ), NIFTY closed at 10736.15.

June 07 close is 10768.35.

Slightly up by 32 points.

NIFTY BANK futures for June Expiry quoted at 26726.90 on May 31 close.

With all the momentum after the RBI monetary policy NIFTY BANK futures for June Expiry closed at 26567.35 on June 07.

While NIFTY has moved up slightly , Bank Nifty could not stay up with all the backing by the Index Management over last 2 days.

Based on this observation, my belief is that Bank Nifty is headed for a down move.

I expect it move down considerably over the remaining trading days in this Expiry Month.

I would go for PUT 26000 for June 28 Expiry ( I do not trade weekly options in Bank Nifty) at price between 160-170.

This becomes our trade number 10.

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.