Welcome to the Deepavali Week.
This week there is a holiday on November 08 and only one hour of Moorat Trading on Wednesday, November 07. For all intents and purpose, it is a 3 day week of trading for us. Let us hope it goes well. We really need some good things happening to us right now.
The volatility still looks to be a regular visitor. The Index ( NIFTY) has gained 429 points since October Expiry in 6 trading days. It is time to shed some of these gains. By the looks of Asia Markets this morning it may happen to some extent today. Worry for us is that the fall in NIFTY may not necessarily affect our stocks in the way we want.
Old saying– What can not be cured must be endured. Option Buyers need a lot of endurance and willingness to swallow the bitter pill of Mark To Market losses day after day till the sun shines for them on some day.
Let us look for that day while carrying on with our selections and trades.
This stock had made a 52 week low of Rs. 275.10 on October 08, 2018 and has moved up to Rs. 375.45 as of Friday, November 02, 2018. The stocks belonging to Anil Ambani Group are hugely volatile and move both ways. Though the last 7 days do not show weakness I am willing to go for a PUT in this stock for the reason that the company is delaying the Quarterly Results. Most of the Infra Companies are in similar situation as ILFS, only they are not telling it to public.
I would go for a PUT at a strike nearly 10% away from the current price. That is PUT 340 at a price of Rs. 6-7.
TITAN CALL 900 was mentioned at around Rs. 20 on Friday. The price did not materialize on that day. If there is a price decline today and we see this price, the trade is still on.
TITAN CALL 900 at Rs. 20.
These are the two new trades for the day. Our part is done. Let the market do its part now.
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.
Ravi kumar November 5, 2018 at 2:43 pm
Sir, Got RelInfra at Rs. 7.55Reply
Azar November 5, 2018 at 3:50 pm
SBI put not going to work out.Currently it it trading around 294.if it will fall 10% this month, still it will not come ITM. What your advice for such trade. Book loss or hold till expiryReply
Anand Kumar November 5, 2018 at 4:16 pm
Today again couldn’t get TITAN 900CE atReply
₹20 . But got relinfra for ₹7.
Tharik November 5, 2018 at 7:49 pm
Reliance Infra will work out very well if NBFCs comes under down trend once again which they are likely to do. Bought 340 PE @7.5 hoping that it will become one more Reliance Capital of September seriesReply
Manish November 5, 2018 at 8:58 pm
Took Titan 920 CE as it is not too far, 6.7% away.Reply