We had all the patience in the world.
Little good it did for us.
NIFTY moved down a little on June 14. A glimmer of hope. BHEL, VEDANTA moved slightly lower. It looks they may soon be getting into something worthwhile.
Another good point was that on a day which ended 48 points in negative, our 3 selections for CALLS actually moved up. It did not yield an immediate profit but staying positive in a declining market is an achievement,
PNB and SBIN also moved lower but that looks like a case of too little too late.
Here is NIFTY for June 14.
A little decline after almost a week of gains since NIFTY was at 10593 on June 05. Let us not count the small decline of 0.70 points on June 08.
We need few more of these days. Let us see what finally happens.
For the record this was the status on Wednesday, June 13:
And on June 14, there was a small improvement in the status:
It is still not a pretty picture to look at. Now we have 10 trading days remaining to make some sense out of it.
Well, it has taken 10 days of trades to mess it up, another 10 should be good enough to set things right and get them right. Most of the options buyers do not share this belief.
They start worrying about getting out of trades, trying to salvage some money out of the trades gone wrong. In options trades 10 days is too good.
In May Expiry, M&M 900 CALL had gone down to Rs. 2.00 and then went up to Rs. 24.00 on Expiry Day.
In April, I had bought HINDPETRO 330 PUT for Rs. 7.20 and within a week it was trading at Rs. 1.20. I sold it for Rs. 30.00 about a week later.
Salvaging small amounts in both these cases would have given nothing. Price movement in the right direction, with good volatility within the expiry time can happen and that delivers the profits.
If the price has gone away too far, like in SBIN, there may be a small doubt.
But for the likes of VEDL, RELCAPITAL, BHEL it is a matter of just the right volatile move for two trading days. We can not see those days if we get out thinking that all is lost.
All may still be lost if the price move does not happen but we do not give up when half the trading month is still remaining.
There is a battle to be fought and won, let us not run away at the first sign of trouble.
Our cup is already full. The likes of Bank Nifty have caused another loss. Really troubling is the part that after going down by some 62 points, our PUT 26000 is also down by Rs. 11.75.
With correct price movement also sometimes we get nothing.
This is attributed to decline in Volatility.
The things Option Buyers have to suffer.
Well, keep up the spirits. It is time wheel of fortune spun for us.
Trade cautiously, trade profitably.
Do not over trade.
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.
Mahesh June 15, 2018 at 7:29 pm
Trade war tension bw us and China. Monday puts will be bullish.Reply
TRUSHANT WASNIK June 15, 2018 at 9:53 pm
I have JSPL 250CE @ 3.5 and ICICIBANK 290CE @4.5.Can you please suggest what to do with these
? Dow is down more than 1 percent making me scared. Your suggestions will be highly appreciated.
Madan Mohan June 16, 2018 at 8:25 pm
Without the support of PSU banks Nifty can not reach higher levels. What PSU banks will do in the coming week is important.
Madan Mohan June 16, 2018 at 8:58 pm
In my previous message please read Bank Nifty instead of Nifty. ThanksReply