Finally, the September F&O series ended,

NIFTY closed much lower than where it closed in September Expiry. Good for us. This month was wonderful trading for us. Almost every trade went right at some stage. Some big profits could be taken which made the month the best ever trading month for most of the readers.

This is where NIFTY closed yesterday.

Let us see where do we go from here. Once again towards new high of 11760 or to the 2018 low of below 10000.

Whatever happens, journey is going to be very interesting.

This is where our trades ended on September 27, 2018.

We gave back the premiums in BHARTIARTL and HINDPETRO. It was more than made up by the other trades.

For the trades suggested yesterday, INFRATEL was not available for the recommended price and RELCAPITAL performed wonderfully. I got PUT 310 for Rs. 3.00 and exited at Rs. 17.00. Even if someone bought INFRATEL PUT 260 at a higher price and lost the money, RELCAPITAL PUT more than compensated for that loss.

We shall review the September Expiry trades in another post tomorrow or on Sunday.

It is time to move on to October Series.

This month too we will have 18 trading days with holidays falling on October 2 and 18.

Main Concern for October Series:

The volatile moves in financial stocks have made the option sellers jittery. Options have become very volatile. What had an Implied Volatility of 45 in September beginning, now has IV near 70. For us it means higher premiums. Sellers have considered the higher risk they are taking and demanding higher price for the options. Poor chaps the option buyers, we have to pay these higher prices. As it is our probability of being profitable is low. The added cost of higher premiums makes our task tougher.

We can not chose our market. But we can select our stocks. High volatility can be very rewarding if it works for us.

My Selections :

Like last month, let us begin in a small way. We have the weekend lined up immediately and then another holiday on Tuesday. It is better to keep the positions light.


In September Expiry, this stock did well at one stage for us. Only we did not cash out.

We have seen how IDEA crashed. BHARTIARTL too should shed some weight accordingly. My eyes are set on the 52 week low of Rs. 331 on July 18, 2018. Another trip in that direction is not ruled out.

The market is likely to open higher today.

We should be able to get PUT 340 in the price range Rs. 5.00-5.50.


Same old story.

As long as Crude Oil and Dollar are strong, HINDPETRO is likely to move lower.

We go for PUT 240 in the price range Rs, 6.00-7.00.

These are my two trades for the day.

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.