There was no post yesterday.

Let us review the performance over last two days.

On January 16, NIFTY had closed at 17894.85. Our best case scenario was for index to move near 17800 by January 19. That did not happem.

In two days, NIFTY has moved higher to 18165.35. This is a big distance away from 17800.

MTM profit has reduced in a big way over last two days and we have to accept the market verdict.

Yesterday, at around 10:45 AM, PUT 17800 JAN 19 was closed at Rs. 6.20 ( nothing left to gain ) and replaced with PUT 18150 @ Rs. 76.20.

Position on January 18:

OptionActionQuantityPrice at entryPrice on 18/01/2023Profit/Loss
CALL 17500 JAN25BUY100877.00 (22/12/22)713.00(164.00)
PUT 19000 JAN25BUY100789.00 (22/12/22)799.3510.35
CALL 18100 DEC29SELL100205.65 (22/12/22)35.55 ( Closed 23/12/22)170.10
PUT 18100 DEC29SELL100130.70 (22/12/22)32.40 (Closed 29/12/22)98.30
CALL 17800 DEC29SELL100150.85 (23/12/22)284.90 (Closed 29/12/22)(134.05)
CALL 18100 JAN 05SELL100122.30 (29/12/22)12.00 (Closed 05/01/23)110.30
PUT 18100 JAN 05SELL100120.00 (29/12/22)94.50 (Closed 05/01/23)25.50
CALL 18000 JAN 12SELL100155.00 (05/01/23)7.35 (Closed 12/01/23)147.65
PUT 18000 JAN 12SELL100117.00 (05/01/23)171.00 (Closed 12/01/23)(54.00)
CALL 17800 JAN 19SELL100185.00 (12/01/23)373.20(188.20)
PUT 17800 JAN 19SELL100125.00 (12/01/23)6.20 (Closed 18/01/23)118.80
PUT 18150 JAN 19SELL10076.20 (18/01/23)40.9035.30
TOTAL176.05

In two days, MTM has come down from + 326.30 to + 176.05.

A setback for sure, but we take what the market gives.

SGX NIFTY is down 92 points at 8:45 AM. If the index really goes down that much, MTM will improve somewhat though not by much.

We have to close all the trades today and set it up for February 2023 Series.

We shall BUY deep in the money CALL and PUT for FEB 23 expiry and SELL ATM CALL and PUT for JAN 25 expiry for setting up the new trades.

That is lot of action today.

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.