NIFTY did nothing much throughout the day.
There was some selling pressure in the last hour which made NIFTY close at just below 10800 level.
Bharti Airtel moved down nicely. So did Vedanta. ( Made new 52 week low ). I wish it would keep going lower from here. Already it has delayed the decline too much.
BHEL was a disappointment today. It recovered after going below Rs. 74 levels.
That made our balance sheet look bad.
Equally bad was INDUSINDBK. It went above 1980, right up to 1989 and then started moving down.
BHEL and INDUSINDBK were our bad performers of the day.
This is the chart:
Options can lose money even when the price moves in our direction. That is time decay, the biggest enemy of option buyers.
Let us have a look at the same trades if these were Futures Trades.
The chart would have looked like this:
A profit of about Rs. 50000 looks very nice.
That would need a whole lot of margin money which most of the traders who buy options do not have.
Time has to work for us now.
It is time to start planning the exits and fresh trades within the same budget.
Still, I will give it one or two more days out of the remaining 8 days.
We stay in the trades and do not add anything today.
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.
Shiva June 19, 2018 at 6:36 pm
Do you suggest me to enter the whole set of scripts as new entry today?.
admin June 20, 2018 at 12:55 am
These stocks were suggested at various points of time based on some observations about the likely price behavior. Some proved right and some went wrong. In some cases, there is still a chance of being right.
If the same conditions are seen we can take the trades not otherwise.
Thanks for reading and the comments.Reply
Mangesh Kadam June 19, 2018 at 8:35 pm
Hi Sir, we should have quit BHEL when we were in profit of around 21k and bhel was close to 74. Just wanted to understand why you insist to stay in the trade when trend is reversed?Reply
admin June 20, 2018 at 1:00 am
In May Expiry I had two lots of BHEL 80 PUT bought at Rs. 2.85.
Got out of 1 lot at Rs. 2.55. Watched the other one going up and was out at Rs. 4.90. This would not have been possible without the wait. It went up to Rs. 5.55 also and finally ended at 0.00.
This is options trading. You can be right and wrong at the same time.
Who knows it may follow the footsteps of VEDL and UPL over next few days and make a new low.
All the best.