On Friday, NIFTY once again crossed 11500 while moving up. For the day it gained 145 points. Added to the 82 point gain on the previous trading day it translates into 227 points move against our trades.
There were two trades which were likely to be impacted by the reduction in the Crude Oil prices.
HINDPETRO went up more than 5% but JETAIRWAYS did not go wrong by much. However exits were taken in both of these trades at Rs. 5.00 and Rs. 9.00 respectively.
Readers may question these exits because in the past I have stated that the I am alright with the total premium as loss.
Here the trades were taken on the premise that oil prices shall be staying up. When that premise has failed, staying n the trade is not likely to succeed. We can again take a trade if oil price moves up.
NIFTY up move spoiled other trades too.
This is the position.
Back to being in loss after having seen the profit.
Options Trading is like that. It has highs and lows which can be extremely stressful. But when we know what we are dealing with, we can withstand the huge fluctuations.
Look at the IBULHSGFIN trade.
The PUT 1160 bought at s. 13.50 had gone above Rs. 50 just 3 sessions ago. One of the readers have posted that he exited at Rs. 42.
This chart shows the loss with current price taken as Rs. 9.40.
ZEEL trade is not included in the chart above by mistake. That is another losing trade.
The latest trade was L&TFH PUT 150.
Actually trade should not have been taken as the suggested price of Rs. 2.00 was not there throughout the day. However some of the readers have taken this trade at Rs. 1.40.
The LTP was Rs. 1.25 on Friday, so this too is a minor loss for the present.
We are now left with 5 trades.
SGX NIFTY looks weak as of Monday morning down by about 50 points and Asia Markets are in the red. We may see some improvements in our trades today.
Let us not take any new trades for the day and just be watchful about the trend and the current trades.
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.