June 2018– We Trade Options– Day 20

Finally June 28, 2018 is upon us.

Our contracts end today. Which way they end up will be known during the trading day.

NIFTY lost out in a big way yesterday. It lost 97 points at close after being down by 115 points few minutes before the close.

I had mentioned that some of our Options are just sitting at a point from where a good volatile move can make them profitable.

It happened yesterday.

BHEL made a new 52 week low. So did UPL. IDEA too went down nicely though recovered at the end. PNB went down to bring back our PUT 80 into some profit. RELCAPITAL at one stage became profitable though it also gave up the gains at close.

Basically it is BHEL, UPL and IDEA which have made most of the gains for us.

That is the point I keep on mentioning that we have to take maximum profit out of the trades that do well and just forget the wrong ones.

Small profits were possible in all of these. But that would have left us with losses only.

Well, I can post a good picture today.

We have to be very careful today and plan our exits profitably.

Depending on the market trend ( not known yet) first we get rid of the absolute losers where we see no chance. This is subjective because getting back Rs. 800-1000 does not make sense to me. Taking care of our good trades and staying with them can make more money than salvaging something out of bad trades.

This profitable position has come after 19 days of agonizing wait. Let us not let it get back to negative.

That will require some active trade monitoring which is a must on the Expiry Day.

Trades As Futures :

There are some selections like SBIN which are losers in our Option Trades but would have given a good profit if traded in Futures. Similarly profit from BHEL, UPL, IDEA would have been far better in Futures trades.

True worth of SELECTION PROCESS is known by Futures Trades results.

This is the chart as of yesterday.

Just 12 Trades resulting into Rs. 280000 profit.

With one day to go today, this figure may become better or worse at the end of the day but this result is better than all the previous months so far.

Some Expiry Day trades are mentioned in another post.

I will repeat here:

Buy:

HINDPETRO 270 PUT at around Rs. 3.00

MARUTI 8900 PUT at around Rs. 60-70.

Let us hope our trades do well today.

Stay cautious , stay alert. Trade profitably.

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.

Comments

Venkat June 28, 2018 at 3:41 pm

Thrilling expiry ! Last hour had sharp rise in profits .. thanks sir for your kind guidance.

admin June 28, 2018 at 4:03 pm

I am glad that the trades finally worked out.
The 2 trades mentioned today for Expiry Trading also came out successful.
Thanks to market and oil price moves.
Reply

Ashish Agrawal June 28, 2018 at 4:10 pm

I made the mistake of booking profits early, in case of UPL & BHEL and not moving to a lower strike. Also, I entered PNB 75 PE instead of 80 PE to save some money, but ended up gaining only a little compared to 80 PE. Learnings is what I would call them, and move on to July Options. Thank you Sir, for your detailed analysis and guidance. Hope for a better July !

admin June 29, 2018 at 7:45 pm

Thanks for sharing your thoughts.
Sometime we win, other times we learn.
Cheers.
Reply

Chirag Patel June 28, 2018 at 4:44 pm

What a expiry week it was…..at some point of time I believed that we would not be in green and exited many trades…..now I realise how important it is to wait in some trades….Thank you for all your guidance and detailed analysis…

admin June 29, 2018 at 7:47 pm

Thanks Chirag for sharing your thoughts.
I never said waiting was easy. Fear of losing in a trade causes more loss than the trade would actually give. It happens to all of us. With experience we can overcome the fear to some extent.
Cheers.
Reply

Nathan June 28, 2018 at 5:24 pm

Hats off to you Sir !
It was wonderful learning experience from your valuable experience.
This JUN series is very special for you even as a coach, I believe.
The simple but effective approach prescribed by you tested the patience for almost 18 overs of this series. But you were all along suggesting to keep the wicket for the last two overs. And the last two overs proved to be very fruitful and rewarding.
Your special picks for the Expiry day trades were excellent and your confidence on this approach is amazing. Always you are so humble and thanking the market for the rewards rather than taking the credit.
The last half an hour on the expiry day requires the best of their skills from the traders and hope experience will make the skills improve to become more effective.
Looking forward for a more enriching experience in JUL series.
Your guidance made me calm while trading and I understand rewards from the market is far better than fixing the target for any trade, once the trade set up is done.
And UPL turned out to be the star performer of this month (overtaking BHEL).
Once again thanks a lot for your excellent guidance and simple methods, Sir.

admin June 28, 2018 at 7:05 pm

Thanks for sharing your thoughts.
Yes,I attribute the gains to the market. A timely move has done the trick. We just had to be or stay in the right trades.
Reply

Madan Mohan June 28, 2018 at 6:12 pm

Assuming those who have nerves of steel might have made a decent profit in the past two days. In the last few days – tangled between hope and fear that was leading to search for knowledge. Always tried to maintain stay cool, but it needs a lot of practice, patience and knowledge. Made mistakes, incurred losses and finally in green. Thanks a lot Sir Ji.

admin June 28, 2018 at 7:02 pm

All is well that ends well. We forget the tension and suspense when finally profit is seen.
BHEL put 75 high price for the day was Rs. 5.40.It was bought for 0.75 right in the beginning. It had moved to 4.40 earlier, then fell to near 1.50 levels before finally coming good today. My exit was at 5.40. Worth all the tension.
Let us move on.
In two months the point has been made that option buying can be done profitable.
Thanks for sharing your thoughts.
Reply

Jayesh June 28, 2018 at 7:56 pm

Thank you very much, sir, for your guidance throughout the month. I have committed many mistakes in this first month of my options trading. I need to work on my patience, fear and greed.
I exited all position till 2.30 pm but some stocks like BHEL, UPL, Maruti, PNB started moving in our direction in last one hour. One more hour of patience would have made difference in my P&L.
Hope to correct this mistakes in next month series.

And I have few questions ;
1)In UPL , in morning it was showing too much difference in bid and ask at strike price of 640 (at times my broker platform showing bid price rs 2.9 and ask price around rs 14 when it was trading around 625) but after sometimes it restored with 3-4 rupees difference.
2) BHEL closed above 70 then how come put 70 premium shows rs 0.25 (shouln’t it be zero as its OTM option ?)

admin June 28, 2018 at 8:09 pm

Thanks for sharing your experience.
Sometime we see odd bids and offers in deep in the money options. Do not place market order. We know what should be the correct price and should place order accordingly.
BHEL settled price is Rs. 69.75.
For working out settled price, weighted average is taken for the traded prices between 15 to 15 30 hrs.
That is why we see that declines after 3 15 pm do not add anything to the put value.
Reply

Mangesh Kadam June 28, 2018 at 9:02 pm

Hi Sir,
I am impressed by your knowledge. Is it possible for you to give your suggestions just before closing market? e.g HindPetro you suggested at 2.9 but at the start of the day it was around 6-7. So I never tried buying. You r suggestions just before market closing (whenever u want us to add few options) will be really helpful.

Nathan June 28, 2018 at 9:41 pm

Sir,
Just to check my understanding of stock selection, I am listing the probable stocks for JUL series.
This being my first attempt, I may be less right in my selection. But always the first step is required to be taken first.

For Buying CALLS, the probable stocks are :
1. INFY
2. M&M
3. INDUSINDBK / HDFCBANK / KOTAKBANK (Any one)
4. SUNPHARMA / CIPLA (Any one)
5. HINDUNILVR

For Buying PUTS, the probable stocks are :
1. HINDPETRO / IOC (Any one)
2. POWERGRID
3. TATAMOTORS
4. ONGC
5. WIPRO
6. UPL
7. VEDL
8. GRASIM

Sir, please comment when you can spare time.
Thanks in advance.

Reshmi June 29, 2018 at 8:45 am

Sir, I suggest you can start a Telegram channel so that you can share your ideas and trades instantly and easily.

Venkat June 28, 2018 at 3:41 pm

Thrilling expiry ! Last hour had sharp rise in profits .. thanks sir for your kind guidance.
- admin June 28, 2018 at 4:03 pm
  
  I am glad that the trades finally worked out.
  The 2 trades mentioned today for Expiry Trading also came out successful.
  Thanks to market and oil price moves.
Ashish Agrawal June 28, 2018 at 4:10 pm

I made the mistake of booking profits early, in case of UPL & BHEL and not moving to a lower strike. Also, I entered PNB 75 PE instead of 80 PE to save some money, but ended up gaining only a little compared to 80 PE. Learnings is what I would call them, and move on to July Options. Thank you Sir, for your detailed analysis and guidance. Hope for a better July !
- admin June 29, 2018 at 7:45 pm
  
  Thanks for sharing your thoughts.
  Sometime we win, other times we learn.
  Cheers.
Chirag Patel June 28, 2018 at 4:44 pm

What a expiry week it was…..at some point of time I believed that we would not be in green and exited many trades…..now I realise how important it is to wait in some trades….Thank you for all your guidance and detailed analysis…
- admin June 29, 2018 at 7:47 pm
  
  Thanks Chirag for sharing your thoughts.
  I never said waiting was easy. Fear of losing in a trade causes more loss than the trade would actually give. It happens to all of us. With experience we can overcome the fear to some extent.
  Cheers.
Nathan June 28, 2018 at 5:24 pm

Hats off to you Sir !
It was wonderful learning experience from your valuable experience.
This JUN series is very special for you even as a coach, I believe.
The simple but effective approach prescribed by you tested the patience for almost 18 overs of this series. But you were all along suggesting to keep the wicket for the last two overs. And the last two overs proved to be very fruitful and rewarding.
Your special picks for the Expiry day trades were excellent and your confidence on this approach is amazing. Always you are so humble and thanking the market for the rewards rather than taking the credit.
The last half an hour on the expiry day requires the best of their skills from the traders and hope experience will make the skills improve to become more effective.
Looking forward for a more enriching experience in JUL series.
Your guidance made me calm while trading and I understand rewards from the market is far better than fixing the target for any trade, once the trade set up is done.
And UPL turned out to be the star performer of this month (overtaking BHEL).
Once again thanks a lot for your excellent guidance and simple methods, Sir.
- admin June 28, 2018 at 7:05 pm
  
  Thanks for sharing your thoughts.
  Yes,I attribute the gains to the market. A timely move has done the trick. We just had to be or stay in the right trades.
Madan Mohan June 28, 2018 at 6:12 pm

Assuming those who have nerves of steel might have made a decent profit in the past two days. In the last few days – tangled between hope and fear that was leading to search for knowledge. Always tried to maintain stay cool, but it needs a lot of practice, patience and knowledge. Made mistakes, incurred losses and finally in green. Thanks a lot Sir Ji.
- admin June 28, 2018 at 7:02 pm
  
  All is well that ends well. We forget the tension and suspense when finally profit is seen.
  BHEL put 75 high price for the day was Rs. 5.40.It was bought for 0.75 right in the beginning. It had moved to 4.40 earlier, then fell to near 1.50 levels before finally coming good today. My exit was at 5.40. Worth all the tension.
  Let us move on.
  In two months the point has been made that option buying can be done profitable.
  Thanks for sharing your thoughts.
Jayesh June 28, 2018 at 7:56 pm

Thank you very much, sir, for your guidance throughout the month. I have committed many mistakes in this first month of my options trading. I need to work on my patience, fear and greed.
I exited all position till 2.30 pm but some stocks like BHEL, UPL, Maruti, PNB started moving in our direction in last one hour. One more hour of patience would have made difference in my P&L.
Hope to correct this mistakes in next month series.

And I have few questions ;
1)In UPL , in morning it was showing too much difference in bid and ask at strike price of 640 (at times my broker platform showing bid price rs 2.9 and ask price around rs 14 when it was trading around 625) but after sometimes it restored with 3-4 rupees difference.
2) BHEL closed above 70 then how come put 70 premium shows rs 0.25 (shouln’t it be zero as its OTM option ?)
- admin June 28, 2018 at 8:09 pm
  
  Thanks for sharing your experience.
  Sometime we see odd bids and offers in deep in the money options. Do not place market order. We know what should be the correct price and should place order accordingly.
  BHEL settled price is Rs. 69.75.
  For working out settled price, weighted average is taken for the traded prices between 15 to 15 30 hrs.
  That is why we see that declines after 3 15 pm do not add anything to the put value.
Mangesh Kadam June 28, 2018 at 9:02 pm

Hi Sir,
I am impressed by your knowledge. Is it possible for you to give your suggestions just before closing market? e.g HindPetro you suggested at 2.9 but at the start of the day it was around 6-7. So I never tried buying. You r suggestions just before market closing (whenever u want us to add few options) will be really helpful.
Nathan June 28, 2018 at 9:41 pm

Sir,
Just to check my understanding of stock selection, I am listing the probable stocks for JUL series.
This being my first attempt, I may be less right in my selection. But always the first step is required to be taken first.

For Buying CALLS, the probable stocks are :
1. INFY
2. M&M
3. INDUSINDBK / HDFCBANK / KOTAKBANK (Any one)
4. SUNPHARMA / CIPLA (Any one)
5. HINDUNILVR

For Buying PUTS, the probable stocks are :
1. HINDPETRO / IOC (Any one)
2. POWERGRID
3. TATAMOTORS
4. ONGC
5. WIPRO
6. UPL
7. VEDL
8. GRASIM

Sir, please comment when you can spare time.
Thanks in advance.
Reshmi June 29, 2018 at 8:45 am

Sir, I suggest you can start a Telegram channel so that you can share your ideas and trades instantly and easily.

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June 2018– We Trade Options– Day 20