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.