August Expiry day ended with NIFTY mildly in the red.
On July 26, 2018 ( July Expiry ), NIFTY had closed at 11167.30.
It has been a gain of 509.50 points for NIFTY for the month. The all time high stands at 11760.20, less than 100 points away.
Well, this enormous gain in NIFTY did not give us anything for our CALLS and the PUTS had every reason to go wrong.
We shall do the analysis of our big failure in tomorrow’s weekend review post. All of us know how bad the month was. It is time to move ahead.
September Expiry is on September 27. There are two trading holidays on September 13 and September 20. We have only 18 trading days in this month. We need the moves to favor us quickly. After a bad August, we look forward to market’s benevolence in September.
First Trades :
HINDPETRO has been a loser in a strong month. Crude price being up and a strong dollar have made this stock go down over last few months. The close yesterday was Rs. 253.10. The 52 week low at Rs. 250.60 is only 1% away. With oil prices moving higher, HINDPETRO could decline below these levels and make fresh lows.
PUT 240 at Rs. 4.50-4.80 would be my choice.
Airlines stocks too have been bleeding last month.
Jet Airways has been into all kind of troubles with delayed staff salaries and delay in declaring quarterly results. It is currently at Rs. 286 and the low in August month was Rs. 258.
The Implied Volatility is very high at 65-70 levels and the premiums quite huge.
My choice would be PUT 260 at around Rs. 9.00 -10.00 levels depending on how the stock opens today.
A word of caution here– the stock is very volatile and we shall do well to book profits early if they come.
These are my two trades for the day.
We shall have more discussions and more trades as the month progresses.
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.
Saket August 31, 2018 at 10:15 am
Pramod-ji, I use ICICIDirect for trading. I don’t see any of the Jetairways contracts enabled for trading. Any idea what could be the issue?Reply
Rajesh August 31, 2018 at 10:33 am
What about yes bank? Today it is down by 5%. What do you think it will go down more due to profit booking?
Vikas Gupta August 31, 2018 at 10:45 am
Shall we wait for sometime in HINDPETRO? It is currently at support line. I guess, we should wait for some time.Reply
Mahesh August 31, 2018 at 1:50 pm
UPL looks bullish, can we go long at 780 strike price?Reply
Ravi Kumar August 31, 2018 at 6:14 pm
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