The first two days of this week were positive for NIFTY. Not good for us.
In these two days, IBULHSGFIN stayed stable, not going against us even as NIFTY went up by more than 150 points in two days.
IDEA too came back into the money though we would have liked it better had it not recovered towards the close yesterday.
CIPLA flattered to deceive. On Monday, it came near to Rs. 511 level and looked set for a move towards 500 but then it turned. Same with RELINFRA. On both days, it came up to Rs. 347 and while we were waiting for a further move below 340, it went above 350.
With just two days to go, we are looking towards booking a good loss this month.
Half of our capital deployed in Options this month is gone.
A loss always looks bad and it should. It is the result of being wrong. But it is a part of trading business and should not put us off. We have to stay with the method and the trades derived out of the method. We have seen how good the profits can be when a few trades work out.
Trades for Expiry Day :
As Expiry approaches, option premiums go down. There is no time left to go right by too much. And we already know the cost of going wrong. At such times, buying some low priced options can do well in quick time.
Few trades for the last two days which can work out are:
This stock made a new 52 week low yesterday while NIFTY was moving up.
The stock closed at Rs. 146.30. PUT 145 is at Rs. 0.95. It can be a good trade if we get it at a price of between Rs. 0.80- Rs. 1.00. Lot Size is 3750 and our maximum risk is Rs. 3750.
Same logic as in ONGC. VEDL too made a new 52 week low yesterday.
We can go for PUT 190 at Rs. 1.10. It may be possible to get this option for Rs. 1.00 too. If the stock opens lower, we can go for Rs. 1.25 as well. Lot Size is 1750 so the maximum risk would be Rs. 2125.
This has been the most volatile banking stocks in recent times. Yesterday, it made a very sharp down move in the last 30 minutes of the trades. As one controversy after another surrounds this stock, it may retest its earlier low of Rs. 165 made exactly two months ago on September 28, 2018. In November Expiry too, it had touched Rs. 168.60 on October 26.
We can go for PUT 175 at around Rs. 2.40-Rs. 3.00 depending on how the price opens.
Lot Size is 1750. Maximum risk is Rs. 5250.
These are the three likely trades to enter with a maximum risk of Rs. 11125.
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.
Santosh November 28, 2018 at 8:48 am
Would you be taking these trades?Reply
Ravi kumar November 28, 2018 at 9:50 am
GM Pramod sir…
ALL 3 above trades are taken…
Have a question: With Crude making low every passing day, Hindpetro is also falling (it should have advanced). When Crude was peaking in last couple of months, Hindpetro fell sharply. Crude & Hindptro are inversly related right?Reply
Devendra November 28, 2018 at 1:13 pm
what should be holding period for these new trade? tomorrow till expiry or at decent profit?Reply
Krishna November 28, 2018 at 5:17 pm
Come back daddy hundred day today. Have not traded this month. Today was a thrilling come back . All the best tomorrow.Reply