A mildly down day on the first day of the truncated week. The small decline did not work out well for us. I had expressed this fear in yesterday’s post.
MARUTI stayed higher. M&M fell a little more than 1 percent but the PUT 700 lost some money. SBIN touched Rs. 300 for a second and ended the day at Rs. 295. That almost puts paid to our PUT. PUT 230 is now more than 20% away. Though stranger things have happened but to expect this PUT to become ITM is a huge expectation. Those who want to get out of this trade can do so. Not that it will give us much. At Rs. 0.60-65 , it is worth about Rs. 1800-1950. Money is money, we could use it for some other trade.
Only trade that went right was the new trade for the day— RELIFRA PUT 340. It could be bought for Rs. 6.80 and went up to Rs. 12.00 before ending at Rs. 10.50.
TITAN CALL 900 could not be bought as the price of Rs. 20 did not come about.
So we are still grappling with a loss in 3 out of 4 trades with one of them gone absolutely wrong.
Interesting Fact :
There have been 7 trading days so far since October Expiry.
NIFTY has been a loser on 4 of these days.
But the losses are small— 94 points, 42 points, 6 points and 29 points.
Gains on the 3 days were huge– 220 points, 188 points and 172 points.
And these days have been alternate losers and gainers. If that trend continues, we may see a big gain today. SGX NIFTY is indicating a positive 34 points up move from yesterday.
Whatever happens, we have to face it. There are no hiding places in the market.
New Trade:
SUNTV made a big down move yesterday on the back of quarterly results. It had made a low of Rs. 557 in a freakish move on September 21, 2018 ( the most volatile trading day in this year). it may again attempt to go to those levels.
PUT 560 at Rs. 9-10 looks like a trade that may work out. The stock is volatile and there is a trading range of Rs. 25-35 on most days. So expect lot of heartburn before the trade finally works out.
Let us give up chasing TITAN CALL 900.
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.
Comments
Ravi kumar November 6, 2018 at 9:01 am
Sir, SunTV’s low in last 7 days is 612. Last close price is 617.
Replyadmin November 6, 2018 at 9:10 am
I have mentioned September low. Unless it makes a move in that direction, we do not make money.
Cheers.
ReplyRavi kumar November 6, 2018 at 9:25 am
sorry..realized after posting my comment
ReplyAditi November 6, 2018 at 11:07 am
As it is elections time, there will be a huge surge in advertisement revenues in coming quarter. I don’t think it is good time to enter SunTv put. #JustMyOpinion
I’m backing off this trade.
Replyadmin November 6, 2018 at 5:10 pm
It is okay to have a different viewpoint. Markets will do whatever it does.
ReplyToday everyone and their uncle were advising about buying SBI in the morning. Good results and good commentary for the next quarter. Stock ended 3% lower.
Market cares two hoots for experts and maybe a little less for us.
Cheers.
Tarun November 6, 2018 at 4:27 pm
@ Aditi , i think by the same logic you should buy bata call- as most of the politician and their followers will go for lot of rallies and hence the footwear they are wearing will get worn out sooner.
ReplyRohit Shourya November 6, 2018 at 5:54 pm
@Aditi,
You might want to consider this: Sun TV has little presence outside TN, Karnataka and Kerela, include few districts of AP. States going to election are:
Chhattisgarh, Madhya Pradesh, Telangana, Rajasthan & Mizoram.
Market wont care even about this logic.
Today morning, the experts and their uncles were bullish on PVR saying that people will watch movies in the coming days. The stock is down more than a percent today.
ReplyManish November 6, 2018 at 7:04 pm
Sir i want to enter 750 put option in Mahindra and Mahindra near 10-11?
ReplyPc jewellers 80 Put option also looks very attractive.
Please give your views
Madan Mohan November 6, 2018 at 9:38 pm
Yesterday I took put trades in Sun TV and DHFL, Today you recommended Sun Tv. Thanks … Madan
ReplyMadan Mohan November 6, 2018 at 9:40 pm
Hexaware is on my watch list. Your Comments Please
ReplyTharik November 6, 2018 at 10:26 pm
Hexaware is one among the 47 stocks where the settlement has to be done in delivery of the stock if the option expires in the money.
Reply