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21-10-21 Bank Nifty - What a Move! And yet it made me sad!A MISSED OPPORTUNITY THAT WOULD HAVE HELPED ME BUY A NEW LAPTOP! Trade Opportunity Date: 21-10-21 Yet another Missed Opportunity-- Bank Nifty at 39550+ Went long 39400 CE at 242 as it was an expiry day and did not want to make the mistake of trading an ATM CE. SL hit at 185 Moved to Nifty 18000 CE as I have not traded Bank Nifty after it cleared 39000 and clearly the SL was an indication that my readings were not good as I had the opportunity to at least place SL at cost or just below the cost. In between checked what happened to the 39400 CE. Surprised to see it at 185! After making a low of 87! The order window was opened by me but realized that the option had decayed to some extent. So suspecting a faster decay if Bank Nifty does not move for some time, i chose not to take the trade. Nifty CE was already in green so chose to play safe. My order would have been for 4 lots or 100 shares. Usually, I don't trade this size but I was expecting a bounce-back as Nifty had been beaten down and that is what usually happens on such days especially when they happen to be the expiry days. After some time I thought of checking where that CE is. I could do so as my Nifty trade was moving on well. 39400 CE was at 553! A few minutes later 600! EOD 632 Assuming I would have held on as I did in Nifty, I may have got 400 points or 100*400 = 40,000! No regrets as I was not ready to take the risk and my Nifty trade was moving on well But this has made my weekend work cut out for sure! This is the potential of Bank Nifty and I will find a way in which I can be part of such moves in the time to come. A few readers/viewers have asked me why I did not cover this huge move in my analysis. The reason is that I mainly analyze Nifty and Bank Nifty is a sub-set if it so it gets covered in any case. How many of you were able to catch this move or like me missed the move? I would love to read your feedback as always! Best wishes for a brighter week which also happens to be the Monthly Expiry week! Umesh 24-10-21
NSE:BANKNIFTY
by AVENUESOFINVESTMENT
HDFC Bank - Real Options Strategy ExecutedHDFC BANK - OPTIONS STRATEGY EXECUTED IN MY ACCOUNT While I was getting ready to write a post cum video on the Infosys Strategy, I looked at my holdings and realized that HDFC Bank was once again at a make-or-break juncture - 1630. It has turned down from this level quite a few times. So exited half my position at the price and banked the gains. This helped me regain objectivity related to the scrip. And immediately, I thought of checking if I could fund a Bull Call Spread in HDFC Bank with the proceeds that I received from the sale of equity in part. I know smart readers are now calculating how many shares I would have sold and that is OK! I like that kind of approach as it would help you develop your mind to your benefit. I also do such things so I know this is a natural reaction. HDFC Bank is behaving like TCS as it is trying to scale higher highs as it gets ready to face the results that are due on 15-10-21. I know it is a bit too early to execute a strategy for the results but I had the funds today so for me, today was a good day. I chose to create a Bull CE Spread as under:-- Long 1620 CE at 44.30 Short 1640 CE at 36.05 When I executed the strategy, the spot was at 1629.65-1630. EOD is at the same level and my strategy is at cost. Please have a look at the video to know more about the details. In case you are reading this on your mobile App, you may not see the link. Please use a web version and you will see the video link in it. This issue has been flagged with Investing.com already. I will get back to you on 18-11-21 as that is when the scrip would react to the Q2 results. If you want to test a strategy like this, please remember that I am sharing this only for educational and informational purposes only. I believe that by sharing to the extent I can via such posts and videos, even I am able to improve my learnings and readings of the market. Please take good care of you capital as you would be in the game as long as your capital is alive - money would eventually come in once you are good at the process that you end up developing for yourself. Till we meet again, Please keep learning, implementing & making money! Best wishes, Umesh 12-10-21
NSE:HDFCBANKLong
by AVENUESOFINVESTMENT
4
Infosys Q2 results based strategies INFOSYS Q2 RESULT BASED STRATEGIES The IT heavyweight is scheduled to declare its results tomorrow. However, I am not sure at what time the results are likely to be declared so am creating the strategy now itself and have this post cum video explaining the basis on which I have created the strategy only for the purposes of tracking I have not taken a position. If I do take, I will let you know. Infosys has been behaving in a very unusual manner for quite some time. Either it goes up quickly and then abruptly falls and then goes in to a drifting mode then leading to consolidation. I have traded Long Only options in the scrip and have gained good ROI. However, for the last few weeks I have stayed away from all IT scrips in Options as the behavior is not something that I like to trade. Infosys Spot is at 1673 when I am writing this post so my strategies would be based on the same. Please watch the video to know the workings related to the strategy.
NSE:INFY
by AVENUESOFINVESTMENT