Expiry Tomorrow

What a week (or 10 days) it has been. No, for a change I am not talking about how busy I was. I am talking about the Markets... It just kept falling (it still is) with no end in sight. We are at 4700 today from a level of 5200 in the last week. A drop of 500 points in NIFTY.

Our last week trade of Strangle (5100 PUT/5300 CALL) turned out to be more profitable that I even imagined. Honestly I was also taken aback by the intensity of the move. I expected this drop to be more subtle and thought that it would play out over a longer period... it was not to be.

Anyways, fresh chart of the NIFTY below;

NIFTY right now is delicately balanced at a multi-year, multi-instance support by a margin of 20 odd points. If this long held support is broken then the next support is more than 200 points away and we will be in free fall. I would give more than 50% chance of this happening.

Tomorrow is the Expiry of November series and like it or not your trades will be ending tomorrow. I know, it is difficult to let go of such immensely gaining positions but don't worry we will have more such instances in the future... Amen.

Because of expiry tomorrow and my lack of practice in writing for last few days, will not write much today. Will write about a new Trading Strategy (Spread) and Trades for next week over the weekend.

Happy Trading till then.