Wells, fools keep hoping and the market does not care.
With this type of up move, any hopes of making profit through buying PUT options are bound to be dashed and yesterday’s market action precisely did just that.
Our trades lie battered and bruised.
There is not much left to lose. So we dig in and try to stay where we are.
As part of being cautious, we do not take another trade. About being profitable, that is another story. Hopefully we shall get back to that story soon.
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
Sai November 6, 2020 at 1:45 pm
I have been wanting to write but was hesitant on how my comments will be taken.
But couldn’t resist writing in.
Big moves are happening just before expiry days just like earlier. But due to physical delivery, we can’t wait till last week and it’s just 3 weeks time only for options to work out.
However, now that we have margin benefit for options, when an option is bought, we can easily short a faraway option which is 3 strikes away. This way we will be taking some profit.
For ex: when Britannia was going right, if we had shorted 3 points away put, we would have some profit .
We need to survive today to fight another day.
We do understand there was a profit in earlier months and overall this strategy is in profit.
ReplyBut there is always a chance of improvement .
Pramod Kumar November 6, 2020 at 2:28 pm
You are always welcome to share your thoughts.
It is the feedback from readers which has made this blog what it is today.
Cheers.
ReplyArjun November 10, 2020 at 9:14 am
This doesn’t work unless there is a disaster. This is sort of money losing strategy…losing since Mar. Buying options doesn’t work. It’s just loss month after month. The only strategies making money are the option selling ones.
ReplyPramod Kumar November 10, 2020 at 5:23 pm
If someone had bought CALLS it would have worked like a dream. There were many stocks that were good candidates for buying a CALL. Why do the readers have to just doing what I am doing?
No one was complaining when money was being made month after month.
I know that losing money hurts and it should hurt. This blog was meant to tell a way about option buying. That method still work. Not working for my trades because I am going against the trend. But I have not told anyone to just be a blind follower. I lose, I suffer. When I make a big profit, the money comes to me not to anybody else.
It is not easy to copy anybody’s trades. Because you may not have that person’s patience, belief or capital.
I am surely unhappy with the prolonged period of losses but that has happened and there is no point crying over it.
I will still take my chances with my method. If you can suggest any method which made a profit of more than Rs. 8.00 lakhs in 30 month period from option buying, please share it here.
All of us can benefit from it.
Cheers.
Reply