We are now left with 2 days to the June Contracts Expiry.

This is where the fun begins.

Time premium is lost fast. But if the price move happens rightly rewards are too good.

There is no harm in trying few options. Even if one or two of these succeed our job is done.

Here is my list of Expiry Day trades:

(1) Reliance Capital : The trade has not worked out in our regular selections. But it can go below Rs. 400 level in no time if the market decides to move down. We have two days for this move to happen. I have seen this stock move 5-6% in a day many times and even 15% once or twice. Let us hope we get that kind of day.

PUT 400 is around Rs. 1.10-1.15. Any price between Rs. 1.00-1.40 is fine.

The loss is limited to around Rs. 1000 in case the stock runs away from us.

(2) Hindustan Petroleum: In last two months it had shown very good volatility. Now is the time for action. PUT 290 should be available in the range Rs. 2.00-2.50.

Lot Size is 1575. So the risk is around Rs. 3150-3940.

(3) Idea Cellular : One day down , another day up. We were in PUT 60 earlier. I had suggested booking profit in that and get into PUT 55. The stock started moving up after touching Rs. 55.20 today and closed the day at Rs. 57.95.

We take a chance that it will restore the down move which began on Monday, June 25 and once again reach 55.20 and go below that.

PUT 57.50 at Rs. 0.50-0.55 is my choice.

This is another Rs. 3500 , Lot Size being 7000.

To balance the three selections, I will go for 2 Lots in Reliance Capital and one lot each in the other two.

Total outlay becomes around 2000 + 3500 + 3500 = Rs. 9000.

This is a sample advice as to how the Option Trades should be approached closer to the Expiry.

Go for low premiums and highly volatile stocks.

Right price move will give very good rewards. In case things go wrong, we know that the maximum loss is Rs. 9000.

In April Expiry, this was the result of our Expiry Day Trades:

Few days back, I had suggested some Option Trades in the Expiry Week.

Out of 5 , 2 were right.

In case of VEDL, Rs. 1.75 became Rs. 10.00 and in case of SBIN, Rs. 1.65 became Rs. 6.50.

While the other three trades became worthless, these two counted for the overall profitability.

That was in April.


Let us hope something similar happens this time too.

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.