NIFTY closed just below 10800 for February 2019 Expiry.
We had Union Budget on February 01. Market had moved higher for few days. Then it moved down for 8 days consecutively. When it started recovering again, the border skirmishes with Pakistan started. In the end, the markets went everywhere to reach nowhere.
Typical of a trader’s life. We try this, we try that and generally end up getting nowhere.
January Expiry was at 10830.95. It clearly tells us that the month as as good as non existent for the markets.
Our Trades :
We are more concerned about our trades. For us it was a losing month. We were in a losing position initially, recovered to be in profit and then gave back all the gains and ended up losing about Rs. 30000.
The expiry day trade of VEDL was additional loss yesterday. IDEA PUT 30 was closed at Rs. 0.50. That was a little saving. Out of 12 contracts traded in the month, only 3 gave profit and this profit was not big enough to cover the loss of other 9 trades.
Not a good show but that is how life is. We can not be winners at all times. Losses have to be accepted and respected.
Time to move on to March Series.
New Trades :
We shall continue with HEROMOTOCORP.
As of now, this stock is not showing weakness over 30 day period. But I am inclined to make an exception in view of its performance over last 3-4 days and the fact that it is just 2.5% away from the 52 week low.
HEROMOTOCORP PUT 2500 @ Rs. 35.00-40.00 would be my choice for a trade.
The 52 week low was made on January Expiry day at Rs. 2561. We are looking for levels lower than that.
Lot Size — 200. Maximum Risk — Rs. 8000.
Another candidate is HINDPETRO.
This stock meets the criteria of 30 day weakness combined with 7 days weakness.
Current Price is Rs. 224.05. We go for PUT 210 which failed us in February series.
PUT 210 @ Rs. 3.00- 3.40 has a maximum risk of Rs. 7140 and can work out to be a good trade.
In March Expiry, we shall have only 18 trading days, as there are trading holidays on March 04 ( Monday ) and March 21 ( Thursday ) on account of Maha Shiv Ratri and Holi festival.
So we need to strike as the opportunity presents itself.
Trade cautiously, 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.
vishal agarwal March 1, 2019 at 9:08 am
Sir I was expecting your first choice would be M&M PE.Reply
admin March 1, 2019 at 9:11 am
That too would be a choice. Take your chances. Cheers.Reply
Ravi kumar March 1, 2019 at 9:29 am
Bought HeroMoto @ 35 sirReply
MR March 1, 2019 at 2:26 pm
Got hpcl @2.2Reply
Gourav Basu March 2, 2019 at 12:43 am
Hindpetro is going up for the last few days. How is it weak over a 7 day period?Reply
dev March 2, 2019 at 10:06 am
Sir, Have you tried put buying in 2017 like market as well? Did it perform like 2018?Reply
admin March 2, 2019 at 10:10 am
There are always weak stocks to look for whatever the market conditions. 2017 was as good as 2018.Reply
vishal agarwal March 2, 2019 at 11:07 am
Sir L&T finance is weak 30days and 7days almost flat, how is the choice of 120PE?Reply
Sir most of the Nifty 50 stocks gained in last 30 days, so this time we would be focusing on non nifty stocks?
Raveendran K A March 3, 2019 at 1:49 pm
Many PSU banks have started fresh up moves on Friday. Maybe it’s time to buy calls on them.Reply
vishal agarwal March 4, 2019 at 7:41 pm
Sir do you think its worth considering RelCapital PE given that it has bounced from the lows and might give up some gains. I mean just based on past price movements and risk reward perspective. Nothing significant has happened that could convince us that the problems of this group is over. Though it does not fit the criteria of 30day and 7 day weakness.Reply