October 2018– Options Buying— Day 10

A day earlier I had mentioned that we are in real volatile time in the market. It proved prophetic.

A day of big gains is negated immediately next day by a bigger fall.

Two days, two big moves. At one time, we had seen a cut of more than 300 points. Surely not a market for those with a faint heart.

The sharp decline yesterday helped to improve the position from yesterday but we are not as good as we were on Friday last.

Let us be thankful for a day like yesterday even though some of the trades like ZEEL did not go well. We have to see at the total performance not each component. There is still time for the other trades to contribute.

Dow Jones was again down yesterday but Asia markets are mildly in the green. As I write SGX NIFTY is up by 29 points. No big deal.

We are in for another topsy turvy day. We hope it ends successfully for us.

No additional trades for the day. Watch the current trades carefully.

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

Rajesh October 12, 2018 at 2:23 pm

Hello Pramod Sir,
Tcs looks weak on weekly chart. Can we consider it for more down fall? Please share your thought.

Santosh October 13, 2018 at 9:07 am

I agree TCS looks pretty, yesterday even when the market was rallying it ended being the top loser. So it can be considered for a put buying opportunity. 1800 and 1820 pe look good. Pramod ji your input please.
Reply
- gaurang patel October 14, 2018 at 12:38 pm
  
  tcs on monthy chart has formed bearish engulfing pattern….its a sell on rallies…
  Reply

Ravi kumar October 12, 2018 at 3:49 pm

Painful wait continues…

admin October 12, 2018 at 8:25 pm

One has to go through pain to get the rewards. Unless one has messed up the trades by taking large positions, Hindpetro trade has already ensured that we shall not have a losing month. Losing the notional profit is another matter.
Cheers.
Reply
- Ravi kumar October 13, 2018 at 7:35 am
  
  Yes sir..HINDPETRO did great for us.. just hoping some of the other picks also give us decent returns..
  Reply

Vikas Gupta October 12, 2018 at 8:03 pm

The reality about Put option buyers:
They want entire India to be destroyed just because they want to make some money.
They are like workers in a cemetery, they are happy when somebody dies.

admin October 12, 2018 at 8:22 pm

Dear Vikas,
India is not stock market. TV channels may keep on talking about it but a stock market fall never hurt a nation. India, US, UK all markets and nation’s emerged stronger after the crash in the year 2008.
A trader is a trader. He trades based on strength and weakness. If we see that Bharti Airtel and Tata Motors are showing weakness since January and we buy PUTS in these stocks, how is that equal to wanting destroying the nation.
Trading is about looking for opportunities. Sentiment has no role here.
Thanks for sharing your thoughts though I do not agree with them.
Reply
Ankit October 12, 2018 at 10:16 pm

Vikas bro, you have simply failed to understand a simple logic, that put option buyers expect only stock’s price to fall within a specified time. It has nothing to do with India. Anyone, trader or not, wants India to grow and be prosperous.
Reply
Mk October 13, 2018 at 5:09 am

Vikasji,

How does buying Puts equate to traders wishing that our country is destroyed? If that was the case, SEBI should only allow Call options and banned Put options…
Reply
Ravi kumar October 13, 2018 at 7:32 am

Stock market is 99% manipulators. 1% Economy. So chill.
Reply
Rajesh October 13, 2018 at 4:32 pm

If you don’t like to buy put, then please buy call for idea, Rcom, PCJwellers, PNB and other garbage stock to save country.
Reply

Sankha October 12, 2018 at 9:25 pm

Markets seem to be making a bottom.Is it time to buy calls?

admin October 12, 2018 at 9:29 pm

It is simple. Look for strength and go for calls if they meet the parameters set for the trade.
Cheers.
Reply

Anand Kulkarni October 13, 2018 at 8:12 pm

Sir, why no post since yesterday,

Mk October 15, 2018 at 7:52 am

Yes…I m also waiting for Sir Post
Reply

Tarun October 15, 2018 at 9:00 am

@Vikas Gupta: Given the same logic every business is evil because it tries to generate profit and aims to sell goods at higher price thereby raising inflation.

Rajesh October 12, 2018 at 2:23 pm

Hello Pramod Sir,
Tcs looks weak on weekly chart. Can we consider it for more down fall? Please share your thought.
- Santosh October 13, 2018 at 9:07 am
  
  I agree TCS looks pretty, yesterday even when the market was rallying it ended being the top loser. So it can be considered for a put buying opportunity. 1800 and 1820 pe look good. Pramod ji your input please.
  - gaurang patel October 14, 2018 at 12:38 pm
    
    tcs on monthy chart has formed bearish engulfing pattern….its a sell on rallies…
Ravi kumar October 12, 2018 at 3:49 pm

Painful wait continues…
- admin October 12, 2018 at 8:25 pm
  
  One has to go through pain to get the rewards. Unless one has messed up the trades by taking large positions, Hindpetro trade has already ensured that we shall not have a losing month. Losing the notional profit is another matter.
  Cheers.
  - Ravi kumar October 13, 2018 at 7:35 am
    
    Yes sir..HINDPETRO did great for us.. just hoping some of the other picks also give us decent returns..
Vikas Gupta October 12, 2018 at 8:03 pm

The reality about Put option buyers:
They want entire India to be destroyed just because they want to make some money.
They are like workers in a cemetery, they are happy when somebody dies.
- admin October 12, 2018 at 8:22 pm
  
  Dear Vikas,
  India is not stock market. TV channels may keep on talking about it but a stock market fall never hurt a nation. India, US, UK all markets and nation’s emerged stronger after the crash in the year 2008.
  A trader is a trader. He trades based on strength and weakness. If we see that Bharti Airtel and Tata Motors are showing weakness since January and we buy PUTS in these stocks, how is that equal to wanting destroying the nation.
  Trading is about looking for opportunities. Sentiment has no role here.
  Thanks for sharing your thoughts though I do not agree with them.
- Ankit October 12, 2018 at 10:16 pm
  
  Vikas bro, you have simply failed to understand a simple logic, that put option buyers expect only stock’s price to fall within a specified time. It has nothing to do with India. Anyone, trader or not, wants India to grow and be prosperous.
- Mk October 13, 2018 at 5:09 am
  
  Vikasji,
  
  How does buying Puts equate to traders wishing that our country is destroyed? If that was the case, SEBI should only allow Call options and banned Put options…
- Ravi kumar October 13, 2018 at 7:32 am
  
  Stock market is 99% manipulators. 1% Economy. So chill.
- Rajesh October 13, 2018 at 4:32 pm
  
  If you don’t like to buy put, then please buy call for idea, Rcom, PCJwellers, PNB and other garbage stock to save country.
Sankha October 12, 2018 at 9:25 pm

Markets seem to be making a bottom.Is it time to buy calls?
- admin October 12, 2018 at 9:29 pm
  
  It is simple. Look for strength and go for calls if they meet the parameters set for the trade.
  Cheers.
Anand Kulkarni October 13, 2018 at 8:12 pm

Sir, why no post since yesterday,
- Mk October 15, 2018 at 7:52 am
  
  Yes…I m also waiting for Sir Post
Tarun October 15, 2018 at 9:00 am

@Vikas Gupta: Given the same logic every business is evil because it tries to generate profit and aims to sell goods at higher price thereby raising inflation.

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October 2018– Options Buying— Day 10