We approach the end of week with some hope. Wednesday did not turn out as bad as we expected. Market opened near the high point of day and then gave up all the gains. Soon enough it was negative all the way.
This big down move did not make some immediate profit for us. But it has brought some of the stock prices to the levels where we can expect a small move making the PUTS profitable.
This is the present situation.
Not good but with hope.
There are just 5 trading days left for expiry of contracts and now is the time for everything to fall in place.
US markets were weak last night and SGX nifty was showing equal weakness. This morning, Asia is weak and SGX is at 10320 at 8:00 am. If the market opens at this level it should be good for our trades. We know that it is always never so simple. There will be ups and downs but the current down trend looks to be real.
We shall find out the facts as the day unfolds.
New Trade :
Our new is generally not new. We look towards the old faithfuls to do the work for us. I am again selecting RELCAPITAL to give some gains to us.
The current price is Rs. 248.80 and the recent 52 week low was Rs. 222 on October 08, 2018. With a strong down trend that level should be taken out. PUT 230 was traded at Rs. 4.75 on Wednesday. With the kind of volatility seen these days, it is difficult to get an option at a decent price. I would go for this PUT for a price up to Rs. 6.00 if the price opens slightly lower.
We are already having enough trades to monitor and if this trade does not materialize it does not matter much.
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 19, 2018 at 9:35 am
Got RELCAP 230 PE at 5.40
Replyamit October 19, 2018 at 11:43 am
4.45 230pe
Replydev October 19, 2018 at 12:20 pm
REALLY hard life for new option buyers 🙁
ReplyDev October 19, 2018 at 3:34 pm
couldn’t even cross 8 later in the day.
ReplyTharik October 19, 2018 at 3:36 pm
Booked L&TFH 125 PE @8.2 (bought at 2.65).
ReplyEntered into lower strike 120PE @2.75
Nathan October 19, 2018 at 3:49 pm
RELCAPITAL is one of the highly volatile stock..we may get good returns in this series.
ReplyASHOKLEY, TATASTEEL, TATAMOTORS & SBIN PUTs are all likely to turn profitable.
As of now, ITC and IDEA seems very very difficult.
Market is supreme.
Let us see.
Nathan October 19, 2018 at 3:55 pm
Oh !
ReplyI have IDEA 35 PE..
But you all may have 37.50 PE..
So you may get decent profit here too..
Who knows, I too may be given something by the market !
Nilesh S October 19, 2018 at 10:17 pm
Had taken IndBulHsgFin 720 PE 2 weeks back @8 based on its weakness and volatility, booked profit today @92..
ReplyGood habit taught by Pramod ji to keep patience well paid off..