October 2018— Options Buying— Day 18– Expiry Day

Volatility is the name of the game. It is a double edged sword. One has to handle this sword rightly to avoid self injury.

Yesterday was another example of the same kind.

I got out of IDEA PUT 37.5 at Rs. 2.00 and TATAMTORS PUT 180 at Rs. 9.50.

Other trades are still on.

NASDAQ lost more than 4 percent on Wednesday. SGX NIFTY is down 99 points as I write and we can expect further down move.

Expiry Trades:

RELCAPITAL PUT 230 is not working out for us. I would go for PUT 240 at Rs. 2.15-2.50. I may even go up to Rs. 3.00 if the opening is gap down.

SBIN PUT 255 at Rs. 1.50 — 2.25 depending on the opening prices.

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

Anand October 25, 2018 at 8:54 am

Hi Sir,

Since we follow you during the BUY process, can you also let us know what options you want to SELL on that day with levels.

I think most of them sold, HINDPETRO at 30-40, but you decided to wait till 76. On the day, you sold, many would have thought, you must still be holding, so they wouldn’t have sold.

Azar Shaikh October 25, 2018 at 6:18 pm

Dear Anand
As per my opinion sell decision is ours. One should happy with small 2000/- or wait for entire month. You can book profit as per your risk reward ratio.
Reply

Chirag October 25, 2018 at 8:59 am

VEDL 210 PE also looks interesting….The stock resisted the upmove yesterday….I am already in the trade at @ 2 rs…lets see how it works…..sept expiry day relcap worked very good …

Ravi kumar October 25, 2018 at 9:04 am

Sbi n RELCAP..we r already in trades right

admin October 25, 2018 at 9:07 am

Those trades are more or less gone. We are talking of different strikes today.
Cheers.
Reply

THARIK October 25, 2018 at 11:34 am

Exited TATAMOTORS 180 PE @13 . Entered into 165 PE @1

Azar Shaikh October 25, 2018 at 6:11 pm

Dear Tharik
On Expiry day as per my opinion. You don’t need to re-enter at lower strike price
Reply

Ravikumar October 25, 2018 at 12:21 pm

Sir, if possible you please try to start a telegram channel and let us know when to exit the trades, as most of us feel exiting the trades at right time is more important.

admin October 25, 2018 at 5:38 pm

Dear Ravi,
The purpose of this blog is to learn how to take the trades. I have explained the exits also from time to time.
Spoon feeding is not good.
Cheers.
Reply

Arun October 25, 2018 at 7:41 pm

Hello sir ,

Sometimes when we exit a trade and move to a lower strike , we see that the lower strike as well trades at a much higher price than usual and it’s often difficult to enter due to the margin requirements .I understand it is equally important to preserve profits but how do we deal with such situations .Do we move to even lower strikes …? How should our thought process be at such times .?

admin October 26, 2018 at 7:29 am

Dear Arun,

Thanks for sharing your thoughts. Will write about this on Sunday.
Reply

Krishna October 25, 2018 at 8:46 pm

It’s quite ironic & travesty for option buyer where the price has moved in his favour by say 3-5%, but is 0.5% above the strike price. For eg. Someone bought ZEEL option 430 when the price was has waited for higher profit at 411 level, but the price reversed and closed at say 432. His option becomes worthless whereas the person buying put option 440 gains by say 2 rs or more. It happens with most stock. ZEEL was just an example.

Sir, I would request your input for above why & how it happens , not technical terms but the simple way you explain everything.

PS: I gained some money in ZEEL twice this month & recovered money in Tata steel while lost some on India bulls housing . I am following the blog & on quora too .
Thanks & Regards

admin October 26, 2018 at 7:28 am

Thanks for sharing your thoughts. Will write about this on Sunday.
Reply

sagar joshi October 27, 2018 at 9:58 am

Please show profit and loss like you always do sir for the month of oct.

Anand October 25, 2018 at 8:54 am

Hi Sir,

Since we follow you during the BUY process, can you also let us know what options you want to SELL on that day with levels.

I think most of them sold, HINDPETRO at 30-40, but you decided to wait till 76. On the day, you sold, many would have thought, you must still be holding, so they wouldn’t have sold.
- Azar Shaikh October 25, 2018 at 6:18 pm
  
  Dear Anand
  As per my opinion sell decision is ours. One should happy with small 2000/- or wait for entire month. You can book profit as per your risk reward ratio.
Chirag October 25, 2018 at 8:59 am

VEDL 210 PE also looks interesting….The stock resisted the upmove yesterday….I am already in the trade at @ 2 rs…lets see how it works…..sept expiry day relcap worked very good …
Ravi kumar October 25, 2018 at 9:04 am

Sbi n RELCAP..we r already in trades right
- admin October 25, 2018 at 9:07 am
  
  Those trades are more or less gone. We are talking of different strikes today.
  Cheers.
THARIK October 25, 2018 at 11:34 am

Exited TATAMOTORS 180 PE @13 . Entered into 165 PE @1
- Azar Shaikh October 25, 2018 at 6:11 pm
  
  Dear Tharik
  On Expiry day as per my opinion. You don’t need to re-enter at lower strike price
Ravikumar October 25, 2018 at 12:21 pm

Sir, if possible you please try to start a telegram channel and let us know when to exit the trades, as most of us feel exiting the trades at right time is more important.
- admin October 25, 2018 at 5:38 pm
  
  Dear Ravi,
  The purpose of this blog is to learn how to take the trades. I have explained the exits also from time to time.
  Spoon feeding is not good.
  Cheers.
Arun October 25, 2018 at 7:41 pm

Hello sir ,

Sometimes when we exit a trade and move to a lower strike , we see that the lower strike as well trades at a much higher price than usual and it’s often difficult to enter due to the margin requirements .I understand it is equally important to preserve profits but how do we deal with such situations .Do we move to even lower strikes …? How should our thought process be at such times .?
- admin October 26, 2018 at 7:29 am
  
  Dear Arun,
  
  Thanks for sharing your thoughts. Will write about this on Sunday.
Krishna October 25, 2018 at 8:46 pm

It’s quite ironic & travesty for option buyer where the price has moved in his favour by say 3-5%, but is 0.5% above the strike price. For eg. Someone bought ZEEL option 430 when the price was has waited for higher profit at 411 level, but the price reversed and closed at say 432. His option becomes worthless whereas the person buying put option 440 gains by say 2 rs or more. It happens with most stock. ZEEL was just an example.

Sir, I would request your input for above why & how it happens , not technical terms but the simple way you explain everything.

PS: I gained some money in ZEEL twice this month & recovered money in Tata steel while lost some on India bulls housing . I am following the blog & on quora too .
Thanks & Regards
- admin October 26, 2018 at 7:28 am
  
  Thanks for sharing your thoughts. Will write about this on Sunday.
sagar joshi October 27, 2018 at 9:58 am

Please show profit and loss like you always do sir for the month of oct.

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October 2018— Options Buying— Day 18– Expiry Day