NIFTY — 11810.95
That is the new high touched yesterday. It is almost 50 points higher than the previous high of 11761 made few days ago. Yesterday’s move was a sure footed move. It was evident since the early trades yesterday that we may see the all time high today.
Finally, NIFTY gave up few points and closed at 11787 which is the record high closing.
We have only 1 CALL trade in our set of trades. And for last few days this trade had gone from bad to worse. Yesterday INDUSINDBK moved up in a significant manner and crossed the Rs. 1800 mark quite comfortably and even touched 1820 briefly. It is still about 2.5% away from being In The Money. Let us see how it goes from here.
As the market kept on rising, another one of our PUT trade decided to do good for us today. RELCAPITAL lost significantly and at one point touched Rs. 169.20. We look for continuation of that momentum downwards.
With two of the trades showing some sign of life, we get some breathing space.
BHARATFORG PUT 470 was not added in the list yesterday. Another one which went wrong from the moment it was taken. Stock moved up 4% on the day to come down by 1% yesterday but the option price goes down sharply due to time going away from us. We just live with the fact and hope that a similar 4% down move will make it good for us. Keeping the fingers crossed for this as well as other trades.
Today is a market holiday.
We meet again here tomorrow morning.
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.
vishal agarwal April 17, 2019 at 9:59 am
Wonders can happen any time Sir. Its only in the hindsight that we can appreciate these unbelievable moves. Ex our Indusindbank CE closed at 4 on Monday and went to intraday high of 20. That is 5x. Somebody could have cut the loss and exited at 4 which was at one point looking to be a sure 0 (atleast options writers must have thought so). It can still end worthless but we have many such instances on this blog when we encashed such worthless options big time. Personally have booked Sunpharma PE at 24 which was at one point 20Paise.Reply
Farhaan April 17, 2019 at 1:02 pm
So far, the strategy of going dominant of puts is not working.Reply
Probability of success in an uptrend in a call greater than that of a put.
Trading is all about probabilities
Anand Kumar April 18, 2019 at 7:58 am
Sir has been giving weekly update on one of the regular visitor’s (Yogi) CALL trades that he took in the beginning of the month worth ~95k.
Those trades too had similar losses for approximately double the investment amount.
So, as Sir as pointed out multiple times, bullish market will still have bearish stocks and vice versa.
But most importantly both our trades and Yogi’s trades are doing badly, because of irrational moves of stocks. One day they are bullish, next day bearish. We lose premium as time passes with no definite trend.Reply
admin April 18, 2019 at 7:59 am
I agree that buying of PUTS did not work so far this month. But did you see the status of trades given by one of our readers Mr. YOGI. In view of the rising market trend, he went with 6 CALLS. Performance of those 6 trades is equally bad. Option Buying is like that.
Let us live with the fact that it is not our actions which make money. It is the performance of the individual stock within a time frame which does it. How regularly we catch the move is the key.Reply
VIJAY April 18, 2019 at 6:29 am
I think, u got the skill required what Pramod sir possess.
“Personally have booked Sunpharma PE at 24 which was at one point 20Paise.” – This tells , you are qualified.Reply
Barda April 17, 2019 at 6:31 pm
Sir Lets see how the laggards perform tomorrow and next week. planning to take few puts.Reply