The first day of October series ( not exactly the first day but we consider it so) saw NIFTY go to a low of 10850.30. It staged a quick recovery from there but still ended up losing 47 points.
We had two selections BHARTIAIRTEL and HINDPETRO.
The low price for BHARTI PUT 340 was Rs. 5.50 for a very small period of time. Before one could blink, the stock started falling and stayed negative throughout the day and closed lower by 4.7% at Rs. 340.
The PUT is now priced at Rs. 13.50. Most of the readers missed the trade though few of them entered at higher prices.
HINDPETRO fluctuated both ways. It was possible to get PUT 240 at Rs. 6.75 or even lower. It ended the day with minor gain at Rs. 6.90.
For the purpose of P&L record on these pages, I am not considering BHARTIARTL trade.
New Trades :
ZEEL ( Zee Entertainment Ltd) made the new 52 week low on Friday at Rs. 429.20.
The trend in this stock has been negative for last one month. Currently it is trading near Rs. 440.
PUT 400 does not have too many contracts at this time ( low volumes ), it would be prudent to go for PUT 420 at Rs. 8.00-9.00.
M&M: ( Mahindra & Mahindra Ltd)
This stock is also in a down trend and the automobile sector on the whole is exhibiting weakness.
Current price of this stock is Rs. 864 and we can go for PUT 820 for Rs. 12-13.
These two trades along with the earlier trade in HINDPETRO will take our trades to 3 for the October series.
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
Nathan October 1, 2018 at 9:06 am
Good morning to All.
ReplyAfter a fantastic SEP series (which I missed due to personal reasons) we are looking for OCT series.
Hope now as traders we are more stable while facing “Profit” or “Loss” with the awareness that, it is the supreme market which reward or punish us for our right or wrong trades.
And the contrarian result on the consecutive months of AUG and SEP 2018 will be guiding force for keeping a more stable and balanced mind as traders when we face Profit or Loss.
Excellent conviction and better discipline exhibited by more traders guided by Pramod Sir.
Thanks a lot Pramod Sir. Congratulations to all !
Wishes for better experience in OCT series.
Ajay October 1, 2018 at 9:08 am
Any idea how Maruti is going to perform this month?
ReplyHardik October 1, 2018 at 10:56 am
Hi Pramod Sir, Your recommendations are brilliant. I like the way your strategy works.
I have started to implement your strategy for the first time. On 27th as you recommended Buying BhartiArtl at 5 but everyone knows how it went just after the market. I liked your genuineness when in today’s blog you said we won’t consider that.
Today you recommended Zeel and M&M
ReplyI was able to get Zeel Oct 420 at 9.05 but for M&M it revolving around 17-18.
Should we buy it at 16 if we get it? your recommendation says 12-13.
admin October 2, 2018 at 11:23 am
Looking at the BHARTIARTL moves today was not a happy experience yesterday. It surely is one trade that got away. It happens. It is time to move on. We did not get M&M at our price yesterday.
ReplyThere will be other opportunities. Forget about what has already happened. Stay alert about what may happen.
Cheers.
sandeep kumar maurya October 1, 2018 at 11:42 am
Sir,
I want to know whether we have to hold these options till expiry or if there is decent gains we can close the position early.
ReplyKk October 1, 2018 at 11:49 am
Sir.. I have been following your trades for a while now and this is the first time I am getting profit in options.. Can u please guide whether we should put trailing stop loss for our option trades.. And how should one select trailing loss?
Replysandeep October 1, 2018 at 12:25 pm
Sir,
I want to know whether we have to hold these options till expiry or if there is decent gains we can close the position early.
ReplyRavi October 1, 2018 at 12:35 pm
Any idea sir how Tata Motors is going to perform this month?
ReplyNathan October 1, 2018 at 2:59 pm
ZEEL is well known for its volatility.
ReplyWith patience, one will be able to get entry within the indicated price range, I hope.
sandeep October 1, 2018 at 4:21 pm
got at 10
ReplyNathan October 1, 2018 at 3:07 pm
Got ZEEL 420 PE for 8.60.
ReplyCould not get entry in to any other so far.
Rajesh October 1, 2018 at 3:35 pm
Sir,
ReplyLooks like bulls are back. How should we trade in this market. Shall we add some call also…
Santosh October 1, 2018 at 5:50 pm
I think it is due to the short covering. Was anybody able to buy the M&M Put?
ReplyManas October 1, 2018 at 6:14 pm
M&M bought at 17.5, at 1 point there was a notional gain of 4500
Replyadmin October 2, 2018 at 12:20 pm
These things happen. For one day there will be bulls in the market. They will be leaving next day and we shall be left with lot of bull shit.
Our trading decisions are to be based on the strength or weakness shown by the stock over 30 day period and 7 day period and not by the momentum of the day.
Cheers.
ReplyKk October 1, 2018 at 6:20 pm
No.. Was waiting for it to come into the range.. But didn’t come..
ReplyRavi Kumar October 1, 2018 at 7:51 pm
Couldn’t get M&M at the price suggested… Zeel was fine..
ReplyHindpetro did well for us..hope it’s downward journey continues