Yesterday the trades worked out very well.

NIFTY made a good up move as can be seen from the chart.

We needed this kind of day to consolidate our position. All round gains helped MTM profit to get better significantly.

The picture is looking good presently but we are not in a comfortable position.

HINDUNIVR and RELIANCE are two weak spots and so is TCS. Any sharp down move in these stocks can cause a dent in the profits. The loss in the sold PUTS is not likely to be compensated from other trades as nothing much is left to be gained in those trades.

What to do?

As always — NOTHING.

We reached this status by doing nothing. Let us see how doing nothing works over next few days.

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.