We were to close the trades in the September series on Friday and set it up again for October series.

No big deal but we were hit by a sudden down move while setting up the new trades.

First the closing of September Series:

Not a good closing but we get whatever the market gives. With two earlier gains in September Series, the profit for September 2020 series was Rs. 13458.

Not bad for a month when stocks had moved sharply on both sides.

While setting up for October Series, this happened:

The vertical drop in the index.

HDFC PUT 1040 was sold before this drop. KOTAKBANK and ICICIBANK PUTS were sold when the fall was happening and BANKNIFTY PUTS bought when the fall was almost completed.

That means the credit received from HDFCBANK sell was less and we paid out more for BANKNIFTY PUTS. This reduced the initial credit received. But there is no remedy for such situations.

Here are the trades and the position at the end of day:

BANKNIFTY PUT 21000 was to be bought for Rs. 400 but it moved to Rs. 546 in no time. We could better price in the other two, but HDFCBANK price became wrong immediately.

Another reader has sent me details of his trades. He could do it a minute before this down move happened and got an initial credit of about Rs. 25500.

Good luck to him but we shall monitor with the above set up and see where it takes us. For the day it has taken us to cleaners.

We stay with the trades.

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.