After the big positive move on Monday, we had a holiday on October 02.
Back to business on Wednesday morning and it looked that bears had never gone away. They had just taken a leave of absence and they came back strongly. NIFTY was finally down by about 150 points at the end of day.
Like it happens many time, a fall or rise in NIFTY does not do anything for our trades.
TATASTEEL PUT 540 was bought for Rs. 9.00. The stock went up higher but thankfully closed lower due to move in last one hour. This option ended up at Rs. 10.30.
IDEA PUT 37.5 could be bought for Rs. 2.00. The stock went down nicely and came very close to its recent 52 week low. At the end of day, the PUT traded for Rs. 3.00.
HINDPETRO did what it has been doing. Going lower initially and then moving up thereby eating away our premium. I will still stay with the trade as crude oil price is making new highs everyday. Today we may see a move in our direction. Or we may not, if Rupee regains some strength against the Dollar.
ZEEL just went through a routine day.
Here is the position:
We missed out on two good trades in BHARTIARTL and M&M which were among the very weak stocks yesterday. Hits and misses are part of a trader’s life. Let us move on.
New Trades :
Only certainty in present market is volatility. Get ready to experience wild swings.
Asia Markets have opened lower ( China is closed) and SGX NIFTY is trading lower by more than 100 points as I write.
To trade in such a market is not easy. If it opens down the dilemma is whether there would be a recovery or a continuous slide. One can be wrong either way.
We missed the bus ( or SUV ) with M&M trade.
Let us take a ride on another auto stock.
ASHOKLEY ( Ashok Leyland Ltd ) has been weak over one month period.
It is actually not giving a clear signal over last 5 trading days but in view of a likely NIFTY decline, I am willing to take a chance here.
Current Price for the stock is Rs. 119. PUT 110 was traded at Rs. 2.70 yesterday.
If it opens gap down, it may be a difficult trade. I would like to buy this option for Rs. 2.50-3.00.
Let us trust our present trades to do well.
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.