NIFTY had a lackluster day on Friday.
We had two trades initiated.
JETAIRWAYS PUT 260 at Rs. 10.00 and HINDPETRO PUT 240 at Rs. 4.60.
HINDPETRO came very close to its 52 week low of Rs. 250.60 ( yesterday low was Rs. 500.70 ) and we look towards further decline from here.
JETAIRWAYS too came down to Rs. 277 levels before moving up. Both the stocks are highly volatile and such movements are expected.
Telecom is always a weak sector. IDEA has been very volatile but trending lower. The approval of merger with Vodafone took it above Rs. 52 only to again fall to Rs. 49 level.
But premiums are very high in IDEA so for the present we avoid it.
We shall go for a proxy play with BHARTIAIRTEL. After being continuously weak since January, it showed some recovery along with the market trend last month.
Now it is time to continue with its own trend.
It currently trades at Rs. 383.25 and PUT 360 can be quite rewarding if the down move happens.
BHARTIAIRTEL PUT 360 at Rs. 4.00 is my choice for trading today.
We tread cautiously this month and slowly build up our profit journey again.
Readers Comments :
One of the readers has made this comparison.
Month Trades Profit Loss Success % Invest. P / L %
May 11 4 7 36 93935 67450 71.80
June 14 5 9 36 117363 55308 47.13
July 15 5 10 33 127985 43090 33.67
August 17 3 14 18 126414 -95339 -75.42
Total 57 17 40 30 465697 70509 15.14
I wish to point out that in June there was additional profit of about Rs. 30000 from 3 other trades which were suggested as Expiry day trades. Including that would make it look little better.
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.