On Sunday, I had posted how to trade this series selections through Options.
Monday ( 30-04-2018 ) was a trading day and markets are closed today for Mayday and Maharashtra Day.
We take this opportunity to review the trades.
Futures Trades :
I have considered the closing price on April 26, 2018 as the trade entry price as the selections were first given on that day. We try to take the profit from everyday even while ending up with a loss from that day.
So Futures trades had an earlier start.
Out of the two BUY selections, both made a new 52 week high on Monday. Good selections.
All the 4 SELL selections went wrong in the two trading days available on Friday and Monday. Exactly similar start was made in April series too which ultimately ended up in profit. So we stay in the trades and watch over next few days.
Options Trades :
HINDUNILVR CALL 1520 was suggested at a price of Rs. 17.00. This rate was possible to get and this trade can be considered as initiated.
M&M CALL 900 was suggested at Rs. 9.50. The stock price opened higher and the low of the day for this call was Rs. 10.00. I take in that trade could not be initiated.
HINDPETRO PUT 290 was suggested at Rs. 5.80. This was a possible trade hence considered initiated.
SBIN PUT 230 was suggested at Rs. 4.00. As SBIN opened high and stayed high, price for this PUT never came up to Rs. 4.00. It stayed lower than this. In such case trade is not taken. We shall review and decide once again.
TATAMOTORS PUT 320 was suggested at Rs. 6.00. Same moves as in SBIN. Rs. 6.00 was not seen during the day. So no trade.
BHEL PUT 80 was suggested at Rs. 0.85. Same case as in SBIN and TATAMOTORS. So again no trade.
We shall consider 2 trades as done on Monday — HINDUNILVER Call 1520 at Rs. 17.00 and HINDPETRO 290 PUT at Rs. 5.80.
Further action :
We still believe in our selections even though the SELL side is going wrong at the moment.
Buy M&M Call 900 in the range Rs. 12-13.
Buy SBIN Put 230 in the range Rs. 3.00 to Rs. 3.50
Buy TATAMOTORS 320 PUT in the range Rs. 4.50 to Rs. 5.00
Buy BHEL Put 80 at Rs. 0.55 -Rs. 0.60.
We are still optimistic about our trades but if possible to get slightly cheaper, we take them. If too much cheaper, it means the price has moved away from us and we leave them for the present.
Option Buying needs some patience and being watchful.
Let us see how things pan out when the market opens tomorrow.
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.
SHISHIR CHAKRABORTY May 3, 2018 at 2:14 am
Mature words Sir. May I have your views on having IT Stocks to Call portfolio as they are witnessing a rally and are near to 52 week highs. eg HCTTech, Infy, etc.Reply