Back to work after a holiday.

On Monday, NIFTY had closed higher by 77 points after negating the down move of about 100 points. Whether it builds on that momentum or gives up the steam is to be seen today. Whatever happens is likely to happen with lot of volatility.

We could not get into M&M trade on Monday.

For the present, we are having two trades— HINDPETRO 240 PUT and ZEEL 420 PUT.

It is time to look for few more trades.

The main problem is high volatility and very high option prices. Some of the stocks have already tanked so much that to expect further decline looks foolish, but they keep going down. Sitting it out for a few days may be better but that would be so unlike a trader.

So difficult choices have to be made.

TATASTEEL is one stock which is currently week.

On Monday, when NIFTY made a smart recovery, this stock went up by just 0.13%. That suggests weakness.

Current price is Rs. 583. I would go for PUT 540 for Rs. 9-10 range.

Whenever I run out of ideas for a trade, there is an IDEA.

The stock is apparently forever weak. Last year in September I had shorted it at Rs. 87.35 and bought back at Rs. 75.65.

Now it trades at Rs. 38.75. NIFTY has gone up in this period while IDEA has lost more than 50% value.

PUT 37.5 was traded at Rs. 1.90 on Monday close. A price of Rs. 1.70-2.00 would be okay.

TATASTEEL and IDEA are my two trades for the day.

Let us see what the day holds for us.

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.