BANKNIFTY shrugged off the Friday blues and moved higher yesterday. Not by much but in the positive zone.

HDFCBANK was again among the losing stocks. That did not help but the other two stocks did well to close with gains and their gains were better than those of BANKNIFTY.

That is what actually helps. The position improved and got back to almost where we were on Thursday.

The MTM loss of Friday is almost adjusted.

In the first set of trades the sold PUTS have lost value to the extent of 80%, 74% and 78% respectively. That is the good part.

But we are not getting 75% of the initial credit as profit.

BANKNIFTY PUT has lost 90% of its value.

If the positive trend continues, this difference does not matter. If the trend reverses, we may again see the MTM profit going down.

It has been the policy to do nothing in such situations. It has worked most of the time.

We stay with the trades for yet another day.’

Trade cautiously, trade profitably.

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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.