Could not post on the Monday market happenings due to travelling.
Tuesday was a day with 100 point fall.
On Monday, SBIN came up with the results which were bad to say the least. As is the present norm in our irrational markets, stock price goes up when the results are bad. Over two days, the stock moved up by almost 10%. That makes our 230 PUT almost worthless.
Can not do anything about it and just hope that TATA MOTORS does not do the same today as it also gave bad numbers yesterday.
HINDPETRO had a steep fall yesterday. In fact, it was the biggest loser yesterday. PUT 290 which was Rs. 3.00 on Friday, ended up at Rs. 11.00 on Tuesday. We deserve some good luck at times, the poor Option Buyers who almost never make money.
Here is the status of first 6 Selections:
Still doing well.
Let us have a quick review of other selections:
UPL 680 PUT — Buy Price– Rs. 9.00 Closing Price– Rs. 6.00
MARUTI– Buy Price — Rs. 95 Closing — Rs. 160
HCC— Buy Price — Rs. 0.50 Closing — Rs. 0.35
VEDANTA— Buy Price— Rs. 3.20 Closing — Rs. 12.00
BHARTIAIRTL– Buy Price– Rs. 6.00 Closing — Rs. 8.00
Out of these 5, VEDL has done extremely well yesterday.
Let us just stay with these trades today and hope for the best.
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.
Comments
Madan Mohan May 26, 2018 at 5:05 pm
My guess – in the next Expiry you may take long call on SBI.
Replyadmin May 31, 2018 at 6:40 pm
SBI does not fulfill the weakness criteria this month. But this is one stock in which I would never go for a CALL. It is a bad stock by all analysis, recent 12% rise notwithstanding, I will still take a short position in this stock i.e. buy a PUT.
ReplyThis is my conviction. Similar case was BHEL in May Expiry. It had shot up unexpectedly in April Expiry and made new 52 week lows in May.
I will be vindicated if SBI does something similar.
Or else, my premium goes worthless.
Thanks for your comments on other posts as well.
Madan Mohan May 31, 2018 at 7:31 pm
M&M helped me to recoup my losses in other trades. Bought M&M Call options 920 @ 8.50 for June Expiry. Thanks for the all write ups through this Blog.
ReplyMadan Mohan May 31, 2018 at 7:35 pm
Those who held M&M trades till the last minute of the trade gained optimum profit. Had i held M&M options till the last minute I would have made additional Rs. 7/- Profit. Generally at what time you would square off your trades?
Reply