The trading journey for the month of September comes to an end today. The September month will continue for three more days after today but as far as trades are concerned the month is over today.
But is is not over till it is over.
The day can be really exciting. If it moves in our direction a lot of money can be made. If goes wrong, the loss can be significant. We have to do the balancing act throughout the day.
Yesterday after opening higher, NIFTY gave up the gains and moved lower. After few both way moves it ended almost flat.
For us, only TATAMOTORS did well for the day. SUNTV too was better than the previous day. ZEEL remained almost where it was.
BHARTI and HINDPETRO PUTS went down in price and PNB was almost constant.
On the whole a day without major gain or loss.
The Challenge Today:
The challenge today is to retain this profit. We have to look for more while taking care to see that we do not give back the profit already seen. If the trend remains negative, it is not going to be difficult. Problem arises if the market moves up. The day will test our skills as traders.
We know the methods. Today, the preferred mode may be to take profitable exits. If some stock is falling sharply we may wait for a while.
For In The Money Options, consider STT also.
Expiry Day Trade:
INFRATEL :
PUT 260 at around Rs. 1.00-1.20 ( Lot Size 1700 ) could be rewarding. The stock made a new 52 week low yesterday. If it goes lower than that today, the return could be good.
RELCAPITAL:
PUT 310 for around Rs. 2.50-3.00. If the stock goes down, it may breach the previous low of Rs. 302.60.
These are the two trades for the Expiry Day. If they work out, it is fine. Otherwise, the loss is not big.
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.
Comments
Sundar September 27, 2018 at 9:34 am
Congratulations for such the great month,
Replyadmin September 27, 2018 at 6:01 pm
Let us be grateful to the market to give us this very good opportunity. It enhances our belief in our methods.
Cheers.
ReplyShrikant Soni September 27, 2018 at 11:38 am
This month has been a picture perfect scenario. Only if Jet trade would have been continued, another lakh in profit would have been there.
ReplyI guess till the next budget time, markets will be wary. Coming state elections if BJP loses, it will be another wave of selloff
admin September 27, 2018 at 6:00 pm
We take what the market gives. Yes, Jet Airways was a missed opportunity. But what is the guarantee that one would have stayed in the trade. I exited RELCAPITAL 290 PUT at Rs. 53. ( Buy Price — Rs. 5.05). Today it went up to Rs. 96.
We do not need more trades. Staying in a trade which is doing well is important. Jet was not doing well when we exited.
No one can win them all.
By the way I got RELCAPITAL PUT 310 for Rs. 3.00 today and stayed with it till it went for Rs. 17.00. Not bad for an expiry day trade.
Cheers.
ReplyShrikant Soni September 27, 2018 at 8:43 pm
Agreed. Although I don’t trade in F&O, your blogs have been helping me learn a lot in normal equity trades. Used to make a lot of losses earlier, have got them down meaningfully.
ReplyWith volatility heightened, you think for next month the option premiums will be pretty steep from the start itself. Gives the buyers a slight bit of disadvantage, with the market having to move a lot more for the positions to come ITM.
T. Sai September 27, 2018 at 4:50 pm
Dear sir,consider STT means ?
Replyadmin September 27, 2018 at 5:55 pm
When Options expire In The Money, there is 0.125% Securities Transaction Tax on the notional value of the trade.
For Example I did not close PNB PUT 70. The settled price of the stock is Rs. 62.50. So the PUT will be priced at Rs. 7.50.
The notional value of the trade is 5500 x 62.50 = Rs. 343750. STT @ 0.125% comes to Rs. 429.69.
So this is the amount which gets deducted from the visible profit.
ReplyAzar Shaikh September 27, 2018 at 8:43 pm
Congratulations Sir. Is this your Highest profit month ever for Option Trading?
ReplyNilesh S September 27, 2018 at 9:39 pm
This was best month for me till date. Thank you Pramod ji..
ReplyTharik September 27, 2018 at 11:30 pm
I hope our readers will not forget the same day one month back. Many of them frustrated including me frustrated with the way market went. As our Master says, ” Markets will do what they want to do. ” It does what it wanted to do previous month and it did what it wanted to do this month. It is the trader’s belief in his system and proper risk management that makes him successful.
By risk management, all our readers should make a note that we may fail for a month or two. But we should be able to sustain until then to see the real success , like how it happened this month.
Kudos to all who stayed patiently in their winner trades.. Though I missed major big trades like IBULHSGFIN, RELCAPITAL, L&TFH and TATAMOTORS, I cashed out big on SBI and PNB which made up for the previous month’s losses .
I am very happy that I will be able to sustain for next two months with the profits.
Thanks a lot Promod Sir for the teachings you have given to us. Eagerly and cautiously (most important) waiting for next month trades.
ReplyRavi kumar September 27, 2018 at 11:39 pm
Today missed Rel Cap. Was available at Rs 4 ..but skipped which costed dearly in the end. Took Infratel but didn’t go as expected
But over all a very good month thanks to you. I started FNO 1 year ago ( Aug 2017) ..and was into losses. With this month’s profit almost 40% of old losses I have recovered.
Hope to continue this winning streak going ahead.
On Next month’s trade.. it seems Reliance Capital and Reliance Infra both seems good PEs..What say??
ReplyLN SINGH September 28, 2018 at 8:36 am
Excellent, keep up the good work
Reply