November 2018— Options Buying– Day 01

This is how October Series ended. The 18 days of trading saw huge volatility. We had to pay very high premiums and managed to squeeze out some profit at the end. All because of one good trade in HINDPETRO.

Time to move on.

November Expiry is on 29-11-2018. That gives us 23 days of trading with two holidays during the month. Volatility is not coming down in a hurry, so being cautious is the key.

Over last 30 days 43 NIFTY stocks are losers.

To me this sends the message that situation is real bad. We shall continue with the trend till the market tells us otherwise.

M&M :

One of the weak stocks. PUT 700 at Rs. 16-18 looks fine.

SBIN:

PUT 230 around Rs. 4.00 can turn out well.

There are many trades which could be taken. We shall talk about them after the weekend.

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

Saket October 26, 2018 at 8:47 am

Please correct the typos in : “November Expiry is on 29-12-2018. That gives us 23 days of trading with two holidays during the month. ”

1. Expiry is on 29-11-2018
2. There will be 22 trading days with 3 holidays (7, 8, 23Nov)

admin October 26, 2018 at 9:10 am

Thanks.
Correction made.
On November 07, there will be one hour trading session in the evening.
Cheers.
Reply

Vivek October 26, 2018 at 9:06 am

There is a news that ruias giving back 54000 crores to banks. SBI will get Max , may go opposite?

admin October 26, 2018 at 9:12 am

What you say has got merit.But market can ignore everything if the trend is down.
We do not jump into the trade immediately but after some wait and watch.
Cheers.
Reply

INZAMAMMUL AHMED October 26, 2018 at 9:51 am

Sir Sun Pharma is also looking weak along with the whole pharma pack.

Rohit Shourya October 26, 2018 at 1:45 pm

Pramod sir,

Please take a look at VEDL as well. We have taken trades in it earlier that had been profitable.

Saket October 26, 2018 at 3:07 pm

Can we consider BIOCON and INFY/TCS on the PUT side?

Nilesh S October 26, 2018 at 5:07 pm

Taken our old favourite BHEL 62.5 PE @1.5, going good so far..

Tharik October 26, 2018 at 6:17 pm

Dear Sir,

I find it very odd to take risk of more than 16k on one trade and I am skipping it for now. No trades yet for the series.

Coming to selections, IT stocks are very weak and HCLTECH looks like a good candidate. Please have a look Promod ji.

Senthil October 26, 2018 at 8:27 pm

Bought PE’s of NBCC and UJIIVAN… Both look very week. Nbcc at 52 week low..

Ravi kumar October 26, 2018 at 9:50 pm

Sir..I agree with Tharik’s comment above about 15-16k per trade. In past max was around 12-13k and it was rare too. Agree volatility is high.. probably should avoid such trades as premiums paid are generally the stop loss too which we follow..

admin October 26, 2018 at 9:58 pm

If one is able to sit idle as a trader it is a perfect situation. But most traders want some action. There were about 30 possible trades today but we have to look at the cost of trades also.
It is all part of learning process.
Reply

Ravi kumar October 28, 2018 at 7:28 am

Took M&M 680 at 14.5

Aditya October 28, 2018 at 8:37 am

Sir, can you post the options trade summary sheet for October 2018.

Ravi kumar October 28, 2018 at 11:49 am

Sir..Waiting for sunday review blog

gaurang patel October 28, 2018 at 6:07 pm

market extremely oversold zone…at this moment put buying is not advisable…its only when a good relief rally takes place then only put buying will be profitable…..some stocks are now refusing to go further down despite market correction……check out arvind, canara bank, sbi not breaking 250 decisively, reliance still not breaking 1025-1027 its 200 day moving average…..likewise sunpharma which broken 200 dma at 557-558 is still holding up at 552-555 levels….but overall now one should be buying at dips instead of buying puts and selling. its time to wait for a relief rally which could take nifty to 10400-10500 levels and then add puts or sell out of the money calls n hold till october expiry….besides for PSU govt is thinking to put liquidity into them..( capital infusion) if this happens then all PSU can run so bank nifty could also run.

admin October 28, 2018 at 7:26 pm

Thanks for sharing your thoughts.
I post on this blog with one simple method of identifying weakness or strength.
That weakness or strength may remain for next few days or reverse.
All the logic stated in your comments also may either prove right or wrong.
So why enter into complications when simplicity works?
Cheers.
Reply

Saket October 26, 2018 at 8:47 am

Please correct the typos in : “November Expiry is on 29-12-2018. That gives us 23 days of trading with two holidays during the month. ”

1. Expiry is on 29-11-2018
2. There will be 22 trading days with 3 holidays (7, 8, 23Nov)
- admin October 26, 2018 at 9:10 am
  
  Thanks.
  Correction made.
  On November 07, there will be one hour trading session in the evening.
  Cheers.
Vivek October 26, 2018 at 9:06 am

There is a news that ruias giving back 54000 crores to banks. SBI will get Max , may go opposite?
- admin October 26, 2018 at 9:12 am
  
  What you say has got merit.But market can ignore everything if the trend is down.
  We do not jump into the trade immediately but after some wait and watch.
  Cheers.
INZAMAMMUL AHMED October 26, 2018 at 9:51 am

Sir Sun Pharma is also looking weak along with the whole pharma pack.
Rohit Shourya October 26, 2018 at 1:45 pm

Pramod sir,

Please take a look at VEDL as well. We have taken trades in it earlier that had been profitable.
Saket October 26, 2018 at 3:07 pm

Can we consider BIOCON and INFY/TCS on the PUT side?
Nilesh S October 26, 2018 at 5:07 pm

Taken our old favourite BHEL 62.5 PE @1.5, going good so far..
Tharik October 26, 2018 at 6:17 pm

Dear Sir,

I find it very odd to take risk of more than 16k on one trade and I am skipping it for now. No trades yet for the series.

Coming to selections, IT stocks are very weak and HCLTECH looks like a good candidate. Please have a look Promod ji.
Senthil October 26, 2018 at 8:27 pm

Bought PE’s of NBCC and UJIIVAN… Both look very week. Nbcc at 52 week low..
Ravi kumar October 26, 2018 at 9:50 pm

Sir..I agree with Tharik’s comment above about 15-16k per trade. In past max was around 12-13k and it was rare too. Agree volatility is high.. probably should avoid such trades as premiums paid are generally the stop loss too which we follow..
- admin October 26, 2018 at 9:58 pm
  
  If one is able to sit idle as a trader it is a perfect situation. But most traders want some action. There were about 30 possible trades today but we have to look at the cost of trades also.
  It is all part of learning process.
Ravi kumar October 28, 2018 at 7:28 am

Took M&M 680 at 14.5
Aditya October 28, 2018 at 8:37 am

Sir, can you post the options trade summary sheet for October 2018.
Ravi kumar October 28, 2018 at 11:49 am

Sir..Waiting for sunday review blog
gaurang patel October 28, 2018 at 6:07 pm

market extremely oversold zone…at this moment put buying is not advisable…its only when a good relief rally takes place then only put buying will be profitable…..some stocks are now refusing to go further down despite market correction……check out arvind, canara bank, sbi not breaking 250 decisively, reliance still not breaking 1025-1027 its 200 day moving average…..likewise sunpharma which broken 200 dma at 557-558 is still holding up at 552-555 levels….but overall now one should be buying at dips instead of buying puts and selling. its time to wait for a relief rally which could take nifty to 10400-10500 levels and then add puts or sell out of the money calls n hold till october expiry….besides for PSU govt is thinking to put liquidity into them..( capital infusion) if this happens then all PSU can run so bank nifty could also run.
- admin October 28, 2018 at 7:26 pm
  
  Thanks for sharing your thoughts.
  I post on this blog with one simple method of identifying weakness or strength.
  That weakness or strength may remain for next few days or reverse.
  All the logic stated in your comments also may either prove right or wrong.
  So why enter into complications when simplicity works?
  Cheers.

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November 2018— Options Buying– Day 01