Nifty has moved down considerably in last one month.
People are starting to get worried when they see these volatile declines and news from US markets too not being good they become more nervous. Midcap stocks have too much volatility and are not comfortable to trade or hold as investments.
This blog is mainly about Options Trading.
In such a market, only Options ( Buying PUTS ) could have made some money and sustained the traders. Even those with big portfolios could have used PUT Options to hedge their holdings and minimized the loss.
Generally traders are not able to sit idle.
If at all one has to take a trade, it should be done through Options and not through Futures in time of extreme volatility.
How to actually go about such trades is explained in my earlier posts on Quora.com
I am of the view that these posts can be useful in the current situation of markets going downwards.
A trader is not supposed to worry about the direction of the market but should act with the trend.
Image Source : Google Images
Trade cautiously, trade profitably.
Disclaimer : The trades shown in the quoted posts are personal trades in the past and are meant as examples of trading in a bearish market. These should not be construed as tips/advice to trade in these stocks.
Bharat February 9, 2018 at 10:41 pm
Pramod sir although its a best thing to get higer most return in risk of some limited risk.. But is there any startegy that can hedge like buy both call and put…and get huge return atleast one side sure shot..Reply