UPDATE and DLF

Hold all CALL sell positions.
Book profit in BN

Bearspread strategy for DLF

Buy 155 PUT in the range of 9-9.50 and sell 145 PUT in the range of 4-5.
Maximum profit around 6000/- and  maximum loss could be in the range of 3500-4000/-
Risk takers can only buy 155 PUT around 9.50 but then exit at 11.50/13 with SL 5.50.

RBI story is over. Every investor now eyeing on FED meet starting later today for two days. If Bernanke makes some good remarks or postpones his plan of easing maybe market will go up.
Now our market is in oversold region. It is now finding good reason for the reversal. PCR is near 1. It can slip to 0.8, means another 70-80 points correction in NIFTY possible before reversal.

It is better to book profit in all bear positions in next two days.
Book profit in JP ASSOCIATE if it does not go below 37.3 convincingly as it has strong support at 37.3.

Hold PNB bank PUT for target 15/-

Disclaimer: This blog does not take any responsibility of your profit/loss
ioptiontrade@gmail.com

 Next blogpost only over weekend. Happy trading till then!

CALL sell TCS, Reliance and TATAMOTORS; JP ASSOCIATE, PNB PUTs and Update on BN

New series has started.
Everything in this series will be governed by RBI policy meeting on Tuesday. Market could take a decisive direction after that meeting. Though RBI can not make reduction in interest rate, and since no change in rate is already factored in present market price, there might not be big turbulence after Tuesday. However, if RBI makes some positive statements as guidance such as RBI will do rate cut by end of the year or after Rupee stabilization etc., market will certainly cheer that.

NIFTY is in the range of 5500-6300 for several months now. It has to break one way or other. It is more possible it will give breakout at upper side, because in spite of all negative macros our NIFTY is holding near 6000 which is not far away from all time high. FIIs are selling but profit booking is very slow and cautious by them. It means they are expecting big jump very soon.

In near term also market might go up. A lot money is being invested in market and it is evident from the volume in trading in recent past. There will be preparation for election soon and lot of money will flow in to the system, it will directly or indirectly flow in to the market.

For safe trading strategies first week must be used for CALL sells.
One has to look for stocks with low implied volatility. One can wait till RBI policy and then take CALL sell positions or alternatively take half the positions now and average half positions after the policy meeting on Tuesday if market goes up. If market (and of course stocks chosen) goes down, anyway you will be in profit.

TCS:
TCS has given good run up in last series. It has very strong resistance in 1800-1900 region.
Sell TCS 1900 CALL between 7-8. Margin money about 50000/ lot and chances of earning 1750-2000 in next 30 days is more than 90%
More than double the bank interest rate.

Reliance:
Reliance could not convincingly break 920-930 resistance even on rally last month.
Sell Reliance 960 CALL between 7-8. Margin money could be between 25000-30000/-. You will able to earn 1750/2000 in next 30 days.
This earnings should be more than three times bank interest.

Tatamotors
Tatamotors is also in the range for some time now and it is not crossing 330. It is fair to assume with low implied volatility it might not cross 330 in this series also.
Sell TATAMOTORS 330 CALL between 2-2.50
Margin money 35000/- and earning will be 2000 to 2500 by end of 30 days.

Assuming one enters in trade of one lot of TCS, two lots of Reliance and one lot of Tatamotors, total investment will be between 140,000 to 150,000 in terms of margin money and earnings by August 29 will be between 7000 to 8000/-. This is very descent return on investment.

NIFTY:
Keep averaging NIFTY 6400 September CALLS
Sell 6500 NIFTY October CALLs in the range of 35-40.

JPASSOCIATE:

This stock is in downtrend for long time.
Buy JPASSOCIAT 40 PUT between 3 to 3.10. There is lot of open interest in 40 PUT.
Investment 12000. Exit anytime after option price reached above 4.00. It has trend line support near 37.

PNB:
Ahead of RBI policy review buy PNB 480 PUT between 5-6. This is out of money PUT buy and generally as a rule one should not buy OTM PUTs. However, in this specific case total investment will be about 2500-3000  and if there is slight negative news on Tuesday, PNB will plunge and give good profit on Tuesday. Otherwise exit the trade by weekend.

BankNifty:
Book part profit at current levels between 350-400.


Disclaimer: This blog does not take any responsibility of your profit/loss

BANKNIFTY

Buy BankNIFTY 10500 PUT for August expiry in the range of 250-260

Disclaimer: This blog does not take any responsibility of your profit/loss

A perfect trading day for any Option Trader

A perfect expiry day for Option Trader.
Your account is having credit balance already.The lottery stocks are in the money (ITM) . Remaining contracts are also ITM such as SAIL, SBIN.
Ranbaxy 310 PUT might generate profit, so as DISHTV.

SBIN
SBI seems to me, forming a base near 1780-1810 region. If it breaks this base, it will go down till 1650 levels, obviously it may not happen tomorrow! But if SBI sustains this level, it is good buy for medium term.
Buy SBI with three/six months view near 1820-1830 for target about 1950. SL 1770.

For our usual option trade business, hold on to all positions, if you get chance to latch on to good profit on any of the remaining contracts depending upon your greed or satisfaction just do it. It is a bonus.

RBI squeezed about Rs 40000 Cr. from the market, there is sudden lack of liquidity to curb Rupee depreciation. In a manner it is giving equal effect as that of CRR cut as mentioned by SBI Chairman. This is tightening of supply of Rupee. In a process Rupee will gain strength for some time. Exporters will now sell dollars, fearing further weakness in dollar.

We are not entering in to any new trades, though there are plenty of opportunities for tomorrow. As I mentioned in beginning a perfect expiry day for any Option Trader. Just sit back, relax, enjoy volatility of the expiry day.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update

Market going up, I thought of gap down opening but it was gap up!
Just hold all positions till expiry or till targets.
SAIL: Target 3.10
LT 920 August PUT: Target 65/66
DISHTV : Target 1.70
Ranbaxy 320 PUT Target 5.50
SBI 1800 PUT : Target 35. This is very difficult to happen now. Lot of shorts were build up in banknifty and upon assurance of our PM about no rate cut, banking started participation in NIFTY rally from last two days. It might continue till expiry.

Since fundamentals are not changing this rally does not seem to have steam, but gap up openings taking it upward. There is rarely a follow up moment during the day. Today there was huge buying by FIIs, maybe they bought enough for gap up opening.

Disclaimer: This blog does not take any responsibility of your profit/loss

LT

LT
Buy 920 PUT between 44-46

Disclaimer: This blog does not take any responsibility of your profit/loss

Update

All parameters are still negative. FII sold in cash. Today after market hours there was a strong rumor about CRR cut and increase in interest rates for NRI accounts to attract foreign investments,
Banking stocks might react negatively to this CRR rumor tomorrow and BankNifty will be sell on rise mode.
Moreover if Rupee depreciation continues BN will go to 10650 before expiry. This is not a suggestion new trades in BN, but one can hold on to earlier bear positions.

Keep averaging NIFTY 6300 (August expiry) and 6400 (September expiry)  CALL options.

Possibility of gap down opening can not be ignored.

No new trades for iOptionTrade.

Set targets as below
SAIL 45 PUT : 3.10
Ranbaxy 310 PUT : 6.00
DISHTV 55 PUT: 1.75

Kindly book profits at every support if you have multiple lots and don't wait for final the target. For those who have only one lot it is advisable to exit with 20/25% profit per trade.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and Lottery option contracts

RBI Governor, Bernanke, Rupee and now our PM. Our PM gave a statement that RBI is not going to hike the rates, perhaps he was indicating at policy meeting of RBI on July 30. Maybe he/his party-men are long on NIFTY/BANKNIFTY!

I don't know whether SEBI or anybody else can take actions on such guided statement. Of course, he can talk on GDP growth, inflation, BOP and other issues but in my view he should not make any remarks on RBI future policy. RBI is sovereign body and capable to taking own decisions and there must process in place in RBI for rates adjustments and policy decisions. So I wonder to assure industry, whether Mr. Singh in his capacity of PM is qualified to talk on RBI policy. 

But now there is a possibility that market could react positively on Monday on PM's judgmental comments. However, if Rupee starts falling down again from tomorrow then market might slide.

Recommendations given on this blog about TCS and SBI turned our trading accounts in green this week. 

Hold SBI 1800 PUT

Hold SAIL 45 PUT. It is in the money (ITM) now and hopefully should give good profit.   

Last week is of lottery option trades. One must select options where implied volatility is very high which increases probability of successful trades. 

But do invest from the profit gained so far. If for some reason you are yet to make profit this month, stay away from below recommended lottery trades. These options could become zero and entire investment could go waste.

Lottery trades:

Buy KTKBANK 100 PUT between 1.60-1.80. Total investment will be about 3200/3600. But if KTKBANK goes below 98 in next two/three trading sessions it does not have downside support.

Buy DISHTV 55 PUT between 0.50-0.75.

Maximum investment Rs. 2500-3000 but has very good profit potential. It could close around 50 in this series expiry and since lot size is big, it could fetch good profit (more than 15/20 K) in reasonably small investment.

Again word of caution, invest in these trades only from profits generated in this month.

Kindly visit the link for trades so far.

https://docs.google.com/file/d/0B7ZW-6KNaQjsY2xmQm4td2gxRzg/edit?usp=sharing

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and NIFTY

Nothing moves right except good monsoon, Rupee is weak, RBI rate hike threat is existing, global markets are not doing well, none of the macro numbers for the month were great, but NIFTY is moving up. Today it conclusively crossed 6000.
FIIs were seller in cash but bought in F & O segment. Lot of open interest in 5900 PUTs. NIFTY resistance in 6075-6095 range. Perhaps gap up opening will take NIFTY in that band and shall stay there for sometime.

TCS posted good results. But stock has very strong resistance at 1740 level.
It is better to book profit now in TCS, if it goes up tomorrow. If it touches 1740 TCS option will reach to 125. Book profit

Book profit in Reliance 920 CALL, if not booked earlier. Exit if Reliance goes 920-923 in cash. Don't wait till results.

Ranbaxy as usual maintained the trend of moving in opposite direction of recommendation. Hold.
SAIL: Hold

Sell NIFTY 6400 CALL of August expiry at market price/about 25-30.
Sell NIFTY 6400 CALL of September expiry in 60-70 range.

If NIFTY goes in the range of 6090, Buy 6100 PUT of NIFTY or 11300/11400 PUT of BankNifty and hold till Tuesday.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and Ranbaxy

Now market is being steered by Bernanke.
Rupee stabilized below 60 and market movers were searching for some other cues and they found one 10000 miles away, Mr. Bernanke, US Fed Chairman. His speech can not do much to US indices but our market could react positively after learning some flexibility in tapering.

For us no significant new positions, keep an eye on SAIL, book profit if 45 PUT option goes near 3.3/3.4. Steel companies are withdrawing investments from India and pose more difficulties in near future.

Reliance 920 CALL, wait for results or book profit in the range of 32-35.

SBIN 1800 PUT Hold

TCS 1620 CALL: Hold till results. TCS might cross 1720/1740 and that could be the time to exit 1620 CALL option.

ITC option: Book profit.

Risk takers can buy RANBAXY 310 PUT between 1.70-2.00. Stock could again fall near 303/305 in cash, book profit then.  This month Ranbaxy always took other direction than recommended but this time if someone is willing to risk about Rs. 800-1000, it is worth taking risk.

Disclaimer: This blog does not take responsibility of your profit/loss
  

Update and DLF, ITC

Yet another day of gap down opening today. Rupee strengthen a bit, intervention of RBI, news on FDI policy and due to all this we might see 40/50 point gap up opening tomorrow. It may not sustain though as there are many negative news. Market will worry more about rate hike as next policy step by RBI and banking stocks will be under pressure.
FII continued selling but bought lot in options, and this is tricky. One would never know whether they are buying CALLs or PUTs. But OI is growing for 5800 PUTs and 5900 PUTs phenomenally. If this continues for next two days, bearishness in market will persist.

I hold same view, positive on IT, Pharma, FMCG and negative on banking, Real estate, metals and some auto-stocks who are not exposed to export markets.

HOLD TCS 1620 CALL, Reliance 920 CALL, SBI 1800 PUT, SAIL 45 PUT

Buy DLF 160 PUT between 2-2.50.
Buy SBI PUTs at every rise in cash segment.
Buy ITC 365 CALL between 4.90-5.20. Book profit at 6.35/6.75. Trade for next two days.

Book profit in Bajaj-Auto.
Exit Reliance 920 CALL sell if profit was not booked earlier.

Disclaimer: This blog does not take any responsibility of your profit/loss

Reliance and SBI

Buy Reliance 920 CALL between 10-11
Buy SBI 1800 PUT between 27-30

Hold Reliance till results on Thursday.

Disclaimer: This blog does not take any responsibility of your profit/loss

BankNifty and TCS

Market continues to move up, as expected it opened gap down but went up during the day. Hanging man pattern was invalidated once it crossed 6005 today during trading hours. Today it could find reason of WPI data. This rally now may not sustain long. Rupee did slide a bit but could hold around 60. However, after many trading sessions I could notice, market went up even Rupee went down. When market starts ignoring negative cues, it means there is lot of strength and even if this rally halts at around 6050-6070 zone, market may not go down much.
On the other hand FII turned seller today. Unusually high open interest is added in 6000 and 5900 PUTs. All this can not be PUT Sell and this means influential hands are buying PUTs to hedge longs. These are not good signs for bulls. PCR is very close to overbought zone, it is about 1.75 and it could show sign of reversal if it touches 1.80 during intraday.

So there are mixed cues but still what is certain is, a trend is positive for IT, Pharma and negative for metals and banks. Very soon all banks will start declaring their results and if they are not good, BankNifty will go back to 11000-11200 zone very quickly. Rate cut hopes have almost diminished and on July 30 there might be increase in interest rates.

Over last 9 months CRR and Repo have be cut by about 75 basis points each, and that has contributed in CPI to go near 10%. Curbing inflation is first target of RBI than be happy looking at lower imports of Gold in June. With all this preamble, one can go short on BankNifty.

BankNifty

Buy 11800 PUT between 180-200. SL 90.
Hold the trade for week.

TCS:
Hold strategy.
Add 1620 CALL if you get around 45-52.

Disclaimer: This blog does not take any responsibility of your profit/loss

    

Update, TCS, INFY and SBIN

This month is so far not very good. Though it was anticipated that for short term market will go up, I did not have many long positions and those were there I exited at small profit. Till this time my trading account is in loss this month. One can see attached link, hope it works.

Still about two weeks left and as no one can predict the market, we have to anticipate direction of the market. Hanging man pattern is formed on Friday, and it market opens below 6000 and continues to go down for next couple of days, then only reversal is confirmed.
Lot of negative factors are built in, except good monsoon. IIP and CPI data is not encouraging, some more macro data will be known by Tuesday. US dollar may again cross sentimental mark 60 as there is very strong support in 58.40/58.50 region.
Most of the events are nowadays are declared after market hours and market is experiencing either gap down of gap up opening very frequently. In last 12 trading days there were four substantial gap up openings and four gap down openings. Tomorrow could be yet another day of gap down opening, but market could recover during the day.

Earlier resistance of 5920-5950 could act as a support.
Reliance is showing strength. One should exit from 920 CALL sell option, if not booked profit earlier. Hold 960 CALL sell option.

TCS:
Buy TCS till Thursday, ie quarterly results day. It can cross 1700-1720.
So one way one can buy TCS  1620 CALL between 52.50-54. Maximum investment/risk is about 13000/-
To reduce the risk sell as many 1800 CALLs as you can. Or simply hold till TCS results on Thursday and then exit.

Another alternative and preferred one since our trading account is negative so far, is to sell OTM PUT. It is unlikely TCS will go below 1540 till this expiry. So sell 1540 PUT between 26-25. Your trading account will be credited by 7500/- tomorrow. One is safe in trend till TCS reaches 1515. Exit if TCS closes below 1515 on EOD basis.

There could be some profit booking in INFOSYS.
Sell 2750 INFY CALL between 80-85 and account will be credited by about Rs. 10000/-
If it closes below 2750 one will able to keep all Rs. 10000/-, if it goes above 2850 in cash exit at small loss.

SBI is in down trend.
Sell SBIN 1850 CALL between 68-72, again account will be credited by about Rs. 10000/-
One can also buy 1900 PUT at 50/-. Total credit balance will be about 2000-2500 and book profit near 1850 from both trades.

If you have any question, please write to me at ioptiontrade@gmail.com

One can see profit/loss account for this month in attached link.
https://docs.google.com/file/d/0B7ZW-6KNaQjsRThhX1lIcTFZMkU/edit?usp=sharing

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and Bhartiartl

Tomorrow market will take direction based on Infosys results.
One must not forget Rupee story. Lot of shorts must have been built in. Soon there could be short covering and Rupee may again depreciate wrt USD. The other most traded pairs in world EURO/USD and USD/JPY have tilted away from USD in last two days. This means globally USD is presently in over bought zone. RBI and SEBI had also taken some actions in swapping Rupee from the domestic market.
All this has culminated in Rupee appreciation. This does not seem to have long lasting effect, but has benefited market for short term.

Market finds reasons for movements. Earlier there was rate cut rumors which took market up, then came Rupee depreciation and quite some time market was governed by Rupee movement and it is still continuing. Now came Bernanke. There is no fundamental change which will help to sustain the rally. However, I do give lot of importance to FII data and now FII again turned in to buyers. If FII continue buying tomorrow, then it must be considered as value buying and in near terms market is likely to go up.

To summarize, tomorrow direction will be INFOSYS driven and in early next week Rupee movement will drive the market.


In short, hold all short positions (except INFOSYS)  and keep booking profits in long positions.
Book profit in Heromotocorp.
Hold other option contracts.
Book either profit/loss in INFOSYS strategy tomorrow.
If INFY goes down our strategy will generate handsome profit.If advice by INFY is not good it can take support near 2200. If it goes up exit INFY strategy at loss.

Buy Bhartiartl 280 PUT between 2-2.50, maybe due to penalty imposed on them investors would like to exit in short term. Those who had earlier bought 280 PUT at 4/- can hold for profit. Target 6.50.


Disclaimer: This blog does not take any responsibility of your profit/loss

@ Taheer:
Strategy on my blog was
Buy IDFC 130 CALL in the range of 6-6.50/6.60. and sell IDFC 140 CALL in range of 3-3.50.

One should have already  booked profit in my proposed strategy. Since I did not advised your IDFC strategy I would like to refrain myself from commenting. 

Reliance and LT Sell CALLs

Hold all the positions, wait and watch.
Market may give very positive opening tomorrow. Rupee strengthen after market hours and that too at very end of currency session. There is high likelihood that Rupee positive movement will continue after RBI and SEBI intervention and market will go up.

But hold all PUT and CALL positions. Even if there is very good gap up, don't panic, let it settle for a day or two and then decide perhaps by early next week.

In spite of all this if market goes down keep booking profits. Market may not go to 5750 and that could be the time to exit all short positions and do positional investment for medium to long term.

Sell Reliance 920 Call between 5 to 6
Sell LT 1520 CALL between 12-14


Disclaimer: This blog does not take any responsibility of your profit/loss

Bajaj-Auto, Sunpharma and Bharti

Hold SAIL, HEROMOTOCORP.
IFCI must cross 27.50 in cash for further up move.

Market is nowadays only taking turn looking at Rupee movement. I read arguments that Rupee has fallen more than 20% but market has not gone below by 10% from the top. So market is not governed by Rupee! This is baseless. We are not solving mathematical equation. Every move of NIFTY is in proportion of Rupee in past two weeks.
Since USD has become strong against EURO and JPY after market hours today, perhaps RBI will find it difficult to swap Rupee from market tomorrow and hence Rupee might slide down from today's high. It will reflect in index and other stocks. Market can again move near to 5800/5750 in next two days.
FII did small amount of buying though and this is surprising. So if Rupee strengthens market will move up, and again there will be short covering by FIIs.

So buy stocks which will be favored by Rupee depreciation. Look  for the non-IT companies who have major turn-over out of export.

Buy Bajaj-Auto 1900 Call at 62-64. Maximum investment 7200/-, Exit tomorrow at 72- 75/- if you could or hold for rest of the week. Or exit this option contract if stock goes below 1820 anytime during the week (in cash segment)  at small loss.

Buy Sunpharma
Buy 1080 CALL between 35-38. Target 45 for tomorrow.

Buy Bhartiartl 280 PUT between 4.20-4.50. Target 9/-
Bharti is finding difficult to cross ichimoku cloud on daily chart and it will go to 273. Keep booking profit with trailing SL.

Disclaimer: This blog does not take any responsibility of your profit/loss

RCOM and INFOSYS

I reiterate, it is extremely difficult to predict market movement. We only can be strategic to adapt us according to market.

Several things happened after market closer on Friday.

Rupee slipped after perhaps HUL closed books of account till 5 PM on Friday, again there was lot of demand for USD. RBI had to intervene.
Generally USD had become more strong and pairs which are traded maximum in the world viz EUR/USD and USD/JPY turned in favor of USD.
Rating agency downgraded banking and real estate for Indian market. Not good for both sectors.
Crude ended dearer.
US Markets opened flat but closed on positive note.
FII though sold in cash in small amount they bought in F & O segment, this could indicate FIIs are bullish but for very small term. It seems they withdrew heavily from Infosys.
Gold fallen further.

So there are mixed cues, negative for longer term but positive for tomorrow morning session at least.

RCOM:
Stock in news. RCOM is Restructuring and repaying debts. Want to sell real estate, and maybe tomorrow they will inform SEBI about their decision.

Buy 140 CALL between 6.10-6.50 and sell 145 CALL at 4.50-4.95.
Maximum loss could be 6000-7000 depending upon rates at which you will able to enter the trade but has maximum profit potential of about Rs. 12000.

Those who want to take more risk can buy 140 CALL between 6.10-6.50 with SL 3/-, Target 9.50/10/11.5.
If there is some positive trigger after land sale and repayment of debt stock has potential to touch 160 before expiry this month. Keep booking profit with trailing SL.

Exit the strategy once news is out.

INFOSYS:
Next week is result week for INFOSYS.
Though Rupee depreciated by 10% INFOSYS stock had not shown any positive momentum unlike peers. Nothing extraordinary is being expected out of results. There is threat from US due to immigration bill. Up and above if advice is not good on result day stock will again come in the range of 2100, like in last July.

Buy 2300 PUT around 72/- and sell 2000 PUT around 20/-
Maximum loss could be around 6000-6500 but profit potential 30,000/-
One can exit immediately after Infosys results.

Risk takers can risk Rs. 9000/- and buy only 2300 PUT.



Disclaimer: This blog does not take any responsible for your profit/loss.

SAIL and DLF

After market hours RBI Governor shrugged of the question of rate cut and secondly he mentioned RBI has very limited role to play in controlling depreciation in Rupee. Market movers will not consider this as positive cue.
Under uncertain situation in many emerging markets investors are having faith in USD and it is becoming stronger day by day. Perhaps HUL deal might appreciate Rupee for tomorrow. It is just above 60 today. If before market opens it slips below psychological number 60, market will give positive opening, if not NIFTY will go down towards 5700 and Bank NIFTY towards 11250 for sure.

Overall trend is down though as expected market showed bounce back. Tomorrow is Friday and maybe traders would like to sit on cash if Rupee depreciates further. Today there was lot of buying by FII.

SAIL
Buy 45 PUT option of July expiry between 1.20-1.30. Target 2.00.One can hold this position till next Friday.
Maximum investment Rs. 4800/-
Maximum loss Rs. 4800/-, but unlimited profit potential. Nevertheless keep booking profits after 10% gain.

DLF
Buy DLF 170 Put option of July expiry series at between 5 to 5.50, target 6.80.
Maximum investment 5500/-
Maximum loss Rs. 5500/-, but unlimited profit potential. Keep booking profits after 10% gain.

Book profit in HCLTECH

Heromotocorp: Adjust target to 34/-

KTKBANK strategy: exit at small loss.

Ranbaxy: Hold

IDFC: Book profit in  30 CALL sell option, set limit of 0.10, hold 27.5 CALL buy option.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update, DLF and HCLTECH

Market may show some bounce back.

Heromotocorp:
We also could not exit and holding contact of 1700 CALL option. Stock fallen at end of the session and maybe we have to book loss, if it does not show sign of reversal.

Ranbaxy
Hold Ranbaxy PUT. In fact it was not USFDA but UK authorities mentioned about quality of Ranbaxy products. Ranbaxy's sell in UK would be insignificant as compared to their US volumes.
Traders will realise mistake soon and shall start selling. Very recently, Ranbaxy is charged 10 mio Euro penalty for antitrust issues in Europe. So stock should go down in theory!

So buy 320 PUT @10/- Maximum loss could be 5000/-

DLF
Buy DLF 160 PUT at around 3.80-4.10. Target 5.50. It will reach to 167 in cash and its option will be near 5.50. This is trade for two/three days.
Maximum risk around 3800/4000

HCLTECH
Buy 800 CALL at around 21-22. Sell 840 CALL at around 9-10
Maximum risk around 5000 to 5500/-, this could be maximum loss. If Rupee continues to slide HCLTECH could reach all time high 840 before this month end and maximum profit potential is around 15000/-

Risk reward ratio is very good.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and safe CALL sell strategies

Today was consolidation day as expected and profit booking can continue tomorrow.
One may see even slight gap down opening, but eventually market may continue positive momentum for some time. As long as NIFTY is above 5810 there are hopes that NIFTY will go up.


Hold IFCI, book profit in IDFC.
Ranbaxy: I have to bite bullet and exit PUT buy, I learned on ET that FDA stated that there are no GMP violations and such issues with Ranbaxy plants! This is surprising, as same FDA issued 483 for Mohali plant few days ago. I surf FDA website but could not find any such comment. Perhaps it is true and stock will go up.

There is still merit in holding OTM PUT options (eg 270) of Ranbaxy, but exit if you have PUT bought 300 PUT option.

Heromotocorp:
Heromotocorp followed other auto companies with bad sale numbers and stock plunged today. It is still above ichimoku cloud and one can hold 1700 option with reduced target of 38.

In such market it is better to sell CALL options and ensure small profits.These are really very low risk strategies.

Reliance:
Stock has moved up phenomenally in past few days. It has strong resistance around 900.
Sell Reliance 960 CALL at around 4.00-4.50
One can easily pocket Rs. 1000/- over next 20-25 days with an investment of 30,000-35,000 depending upon margin money your broker would charge.
Those who want to take more risk can sell 920 CALL between 11-12.

Maruti
Auto numbers are bad.
Sell 1750 CALL between 8-9.
Maruti is trading at 1560-1580 range. It is unlikely it will cross 1750 before expiry. One can earn 2000/- in next 20 days without raising adrenaline levels. Investment could be about Rs. 40000/- as margin money. Place limit orders as these contracts are not very liquid.

Tatamotors:
Sell Tatamotors 330 CALL at around 1.00-1.20
Within next 20 days you will be richer by Rs. 1000-1200 (excluding brokerage).

If you could sell at least one lot each of above options, total margin money could be around Rs. 100,000 and    tomorrow your account will be credited by approximately Rs. 4000/-. So accounting for brokerage and other expenses, over this 100,000 investment in next 20/25 days you will able to earn about 3500/-, this is more than 5 times bank FD interest rates. Risk reward ratio is very promising.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and new strategy in KTKBANK

Keep booking profits in IDFC and IFCI. Both companies applied for banking license and one has to wait what RBI does now. There is high likelihood on speculations stocks could continue upward movement.
Book part profit in IDFC 130 CALL option if stock goes close to 137 in cash. IDFC 130 CALL option could be between 10 and 11 then.
IFCI also should give good profit if it crosses 28.25 tomorrow. It could experience some resistance there, better to exit with profit.

Book part profit in Heromotocorp 1700 CALL option. Most of the auto companies reported de-growth and I am not confident about results of Heromotocorp, though it shown strong upmove today. Now 1700 Option is in the money and if stock touches 1730 option value will be about 52/54 and it is good to exit.

Since market recovered very fast there could be profit booking very soon, so it is better to unwind long positions for the time-being.
Hold Ranbaxy PUTs.
Don't forget to average NIFTY 6300 calls

Low risk strategy in KTKBANK

Buy 125 CALL KTKBANK between 3.20-3.50 and Sell 130 CALL of KTKBANK between 2.20- 2.50. Execute both trades simultaneously.
Maximum lass could be 2000-2500 but has profit potential of 7000- 8000 if KTKBANK closes above 130 at the expiry.

Disclaimer: This blog does not take any responsibility of your profit/loss