This series was a big test.

Instead of Options, I was trading Futures.

Futures can give big rewards but risks too are equally big.

One has to be right in the direction of the trade to get a reasonable profit in case of futures.

Friday and Monday made that direction right. The rewards were good as all trades were closed except one PUT trade in SUNPHARMA which is now almost worthless.

Here is how NIFTY moved yesterday.

If IT sector had not stayed positive, the fall would have been bigger.

It was good that INFY PUT 1400 was closed few days earlier.

Status of trades on September 26:

MTM shows a profit of Rs. 298879. Out of this, 298424 is booked profit and the small remaining part is the present value of SUNPHARMA PUT 840. It does not matter now whichever way that goes.

Trades:

Maximum profit came from TATAMOTORS trade. Futures were shorted at Rs. 488.40 and then it was a long wait till today. Bought back at Rs. 398.60 today. With a lot size of1425, the trade gave a profit of more than Rs. 127000.

BHARTIARTL and SUNPHARMA were the two trades that lost money.

HDFC profit came from 3 contracts, PVR too had 3 contracts traded and same for RELIANCE.

NIFTY futures was a single contract.

13 futures contracts with 2 loser gave a profit of Rs. 242262 thanks mainly to TATAMOTORS trade.

Among the Option trades, maximum profit came from NIFTY 18500 PUT which was bought as a substitute for NIFTY futures trade. This one contract gave a profit of more than Rs. 25000.

All option trades ( 9 contracts – 3 losers ) resulted in a profit of Rs. 56617.

October Series Trades:

On Friday, BPCL Futures ( 1 lot ) were shorted at 313.80. Today exited that trade at 306.80 to book a profit of 7 points i.e. Rs. 12600. ( lot size – 1800 ).

TATAMOTORS futures were again shorted for October series at 399.30.

Let us see how this stock performs after the big fall in September.

With not much at stake today by way of trades in position, the day should be relaxing for me after the excitement of last two trading days.

This series taught the Jesse Livermore lesson again:

Over to October series now.