A day that raised our hopes a little and then dashed them.
Nifty went down sharply and stayed down. Closed 102 points lower.
With 6 PUTS in hand and 2 of them near the money/In the money, it looked like our position will improve. Life in the market specially for option buyer is not so straightforward.
Calls went terribly wrong. Can’t blame them, there was a big down move.
It is the PUTS that spoiled the status. HEROMOTOCO made a new 52 week low and we had a right to expect more down side from there. It came back.
MARUTI did not make new low but we did not need that. It went below Rs. 6500 but closed a little higher at 6522.
Such moves take away the premium and now the time has almost run out.
The move yesterday reminded me of a very old English movie.
It was a simple comedy. A cab driver thinks that he is likely to have a good time with the lovely lady ( Sophia Lauren ) but suddenly finds that he is being robbed by lady’s friends.
For us also, the lovely lady (the market ) gave the feeling of a good time but her friends ( the options we had bought) actually robbed us.
The name of the movie describes the market perfectly for us at most times— Too bad, she’s bad.
Truly it was bad yesterday.
This was the status at the end of the day.
We look towards both MARUTI and HEROMOTOCO to still do well for us. Let us hope that they do.
New Trades :
Some of the readers have suggested a trade in ZEEL for last few days.
Now its meets the parameters.
I know some will say that we are late in entering the trade but that is nature of trading. We need a picture to emerge. We get the right signs now.
ZEEL PUT 400 @ Rs. 4.00- 4.50 can be a good trade. Lot Size 1300, maximum risk Rs. 5850.
Trade profitably, trade cautiously.
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.