Two strategies for October 2012

Buy RELINFRA  540 PUT @ Rs. 27 Exp. October 25, 2012 

Sell RELINFRA 480 PUT @ Rs. 7 Exp. October 25, 2012

Sell RELINFRA 640 CALL @ Rs. 4 Exp. October 25, 2012

RELINFRA has shown reversal from long time channel support. There is possibility that it could continue down trend in coming days. 

This strategy will make profit more than Rs. 20,000/- if RELINFRA goes below Rs. 480 at expiry. If it does not do so, then maximum loss could be about Rs. 8,000/-. There is remote possibility if RELINFRA does extraordinarily well, then 640 call could come under pressure and loss could be more. 

Still risk reward ratio is very good. However, one should reevaluate this strategy if REINFRA crosses 585/590 within next 10 trading sessions.

One more strategy:

Buy TCS Future of November expiration @ 1300-1310/-  and 

Sell 1350 TCS CALL @ Rs. 30/- of Exp. October 25, 2012. 

Exit only from TCS Future  if TCS goes below Rs. 1265 in SPOT and continue with Sell TCS Call option to recover loss in Future. 

It seems TCS is forming support near 1275-1270 area. So this is low risk strategy. If TCS goes down below 1265 in SPOT then their could be possibility of going wrong in this trade. This strategy will make profit if TCS stays above 1300 till October expiration. 

Trading strategies and astrology!

Sold some 6000 calls for September expiry at around Rs. 19/-


Last month Jupiter was overseeing Mercury and market took North direction. This could be one of the reasons interalia other favorable factors. Also as per my observations (and one can confirm looking at past data) whenever there are five Saturdays in  a month all markets would normally go up.

Now Mercury is changing position on Monday and Jupiter will not oversee Mercury anymore. This would have impact on financial markets.
In addition many technical indicators have reached overbought conditions and started showing negative divergence.
Combination of all these factors, I think there could be possibility of some correction very soon.
My present trades are as below:
Buy PUT 5600 in the range of  Rs. 55/- and 60/- ( This is showing some losses as 5600 PUT is being traded around Rs. 45.
I will sell PUT 5400 @ Rs. 25 and 30 and shall be in market in October month with bear spread strategy with NIFTY.

Premium paid so far is covered by selling equal amount of 6000 CALLS as mentioned earlier in this post.

Disclaimer: This blog does not take any responsibility of your profit and loss. Kindly do your own research while you trade.

Expiry day today and strategy next

Strategies posted during last three/four days did not do very well and incurred small loss at the end. I also lost some money.
For tomorrow one may buy 5600 PUT at around Rs. 60. If someone is buying more than one lot then he/she  should keep half quantity as positional trade for October expiry.
If one wants to hedge then he/she can sell 5400 PUT @ around Rs. 20.

If one hedges then strategy will start earning profit if NIFTY goes below 5560. Maximum profit could be Rs.8000/lot if NIFTY goes below 5400 at expiry.
Maximum loss could be Rs. 2000/lot.
Risk reward ratio is good.


Disclaimer: This blog does not take any responsibility of your profit and loss. Kindly do your own research before you trade.

Continue strategies till tomorrow.

Strategies posted during last three/four days did not do very well and incurred small loss at the end. I also lost some money.
For tomorrow one may buy 5600 PUT at around Rs. 60. If someone is buying more than one lot then he/she  should keep half quantity as positional trade for October expiry.
If one wants to hedge then he/she can sell 5400 PUT @ around Rs. 20.

If one hedges then strategy will start earning profit if NIFTY goes below 5560. Maximum profit could be Rs.8000/lot if NIFTY goes below 5400 at expiry.
Maximum loss could be Rs. 2000/lot.
Risk reward ratio is good.


Disclaimer: This blog does not take any responsibility of your profit and loss. Kindly do your own research before you trade.

Continue strategies

Yesterday's post recommended bear spread strategies for Axis bank and LT
Both are in right direction so it is advisable to hold these positions.

Disclaimer: Blog does not take any responsibility of your profit/loss. These are mere suggestions and kindly do your own assessment if in case you decide to trade based on these recommendations. 

Bull Spread Strategy TCS

I expect some profit booking during next two days though I am not bearish.
I think TCS should show some positive movement and can cross 1375 before this expiry.
Buy TCS call 1350 for September expiry near Rs. 6/- and Sell TCS call 1400 trading near Rs. 2/-
Risk reward ratio is attractive.
Premium for buying TCS call can be covered by selling NIFTY 5800 call for September expiry.