Welcome to Monday morning.

After a volatile Friday ( good for us) we may not see similar action today. The volatility may reappear on the expiry day. The kind of events which happened on Friday leave their shadow and they come to haunt the markets from time to time. Let us see how it pans out this time.

For us it is time to be cautious and practical. It is time to protect the profits.

We are now having 6 open trades in the following stock options:

BHARTIARTL

TATAMOTORS

PNB

SUNTV

IBULHSGFIN

ZEEL

Except BHARTIARTL all are at a price higher than the buying price.

The one with good profit is IBULHSGFIN. In this we should get out of PUT 1160 and move to PUT 1000. If the kind of move which happened on Friday repeats itself, PUT 1000 will also make good money. Or else, we have protected our profit.

In PNB also, profit could be booked if the stock moves slightly lower.

For others, it is still wait and watch.

New Trades:

It is expiry week now. Premiums should have come down by now but the high volatility on Friday has made them go higher. Still, there are a few good trades which can work out.

IDEA:

IDEA PUT is generally a good idea.

The stock made the latest 52 week low on Friday. ( Not a big deal, many stocks did) Then it recovered to near Rs. 45 level. It has been a week stock for the last one year. Last year in September I had shorted IDEA Futures at Rs. 87.35 and covered the trade at Rs. 75.65.

PUT 45 at Rs. 0.90-1.00 could be a good trade. If the stock revisits the low, we may get Rs. 4.00.

To me it looks to be a very good reward to risk ratio.

HINDPETRO:

For last one week this stock has behaved opposite to the market trend. With Crude Oil prices going up once again, it is time HINDPETRO also went down. We can go for PUT 250 @ Rs. 2.20-2.50 range and let the crude price take it to the level where we make some money.

How the Asia Markets Look This Morning:

As I write, Hong Kong is negative and China is a big gainer. SGX NIFTY is down 22 points.

We may see a weak open for NITY and after that it is for the buying ans selling pressure to take the markets whichever way it goes.

For us it is always– 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.