Post Market Report, December 27, 2013 | Stocks and Commodities

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December 27, 2013
Time: 6.45 pm

Post Market Report:

1. First, our apologies for not bringing in Mid Market Report.
2. But there was nothing to write about as it was totally a dull day.
3. Markets closed as expected. There was buying by FIIs, so markets went up by about half a percent.
4. Volatility is very low, below 15.
5. So it is not right time for option sellers.
6. It is time to exit the positions created earlier.
7. For example on 20th November we have given a call to sell both 5500 Put and 7000 Call of March 2014 expiry for a combined premium of Rs 130. Now the combined premium is only Rs 45. A profit of Rs 85 per share, which translates into a profit of Rs 4250 per lot, which is an excellent profit, considering the low risk.
8. So we try to sell some short term options in order to get some return for our investments now.
9. If everything goes well, markets will take a direction in the first week of Jan, 2014 and action will begin in the second week as Infosys starts the results seson.
10. Most probably markets will break out in Jan, 2014.