Yesterday, market opened with a bang and made a new high.
Within an hour of opening, it came down by 100 points from the high of the day and then moved within that range for the rest of the day with a negative bias. a look at the NIFTY chart tells the story of the day.
The new record high is 11856. 15.
Let us see how long this status is maintained.
Our Trades :
We had hopes from INDUSINDBK and RELCAPITAL.
One obliged and one did not. INDUSINDBK which had moved strongly up the previous day, did the exact opposite yesterday. It was down by more than 3%. The CALL 1860 came down from Rs. 19 to Rs. 5.85.
RELCAPITAL had gone down by 7% on previous trading day. It fell by another 12% yesterday. PUT 170 is now in the money by a significant margin. The stock price closed below Rs. 150. PUT 170 closed at Rs. 25.00. A little more downside may see the stock going to Rs. 140 level. That would be the time to look for an exit.
This is the only trade which has gone right in this month. But what else should we expect when market is making record high in 2 out of 3 trading days in the week. It was a blessing from the market which we should accept with humility.
BHARATFORG too moved down to Rs. 500 level. A down move by 6% would bring it At The Money. But will a 6% move happen within remaining 4 trading days? Let us leave it to the market.
The position of our trades has improved considerably though still in loss.
This is a good improvement from the loss of Rs. 42000 two days earlier.
Let us hope that few more of our trades do well over next 4 days.
Would Buying Calls been a better way ? :
It is human nature to have second thoughts when things go wrong.
Many readers have pointed out that keeping in line with the market trend, we should have bought CALLS.
Option trading is a different ball game.
One of our readers Mr. YOGI had bought CALLS. He was very vehement about his trades. We reviewed those positions last week and here is the review for this week:
The status as on April 18, 2019 :
The loss is reduced from Rs. 44000 on last Friday but still it is a loss.
It shows that buying CALLS or PUTS does not matter. What matters is being right in the trade.
Enjoy the weekend but keep visiting here everyday including the holidays.
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.