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SoS Update: 6% up, closed Unitech/JP, shorted Nifty calls


Today was expiry so some updates:

  • Closed Unitech position at 130.3. This results in a virtual net profit (from the first trade) of about 1.2 lakh after brokerage, rollover costs etc. I am not rolling this over – this has been a ridiculously successful trade and I think Unitech may have positive news flow in the short term. Also, there may be better avenues to deploy short capital.
  • Close JP Associates position at 123.5. From opening at 157.2 this trade resulted in a virtual profit of about Rs. 1 lakh. Again, I’m not rolling this over right away; I think it’s done a very fast move, and I might reinitiate after the US bailout plan is revealed.
  • I’ve rolled over half the ICICI short, but closed the rest, as again, I don’t know about the US bailout situation – we might come into a better position to short later.
  • Closed Nifty future trade at a profit of about Rs. 32,000.
  • Shorted 600 Nifty 4100 call options at 209 each. My deal is that I need some capital to be employed; but I don’t want to risk it in a future – a short call gives some level of cover (remember, no leverage).

Here’s the status:

SoS Update: 6% up, closed Unitech/JP, shorted Nifty calls

About 6% profit in about 1.5 months, with less than 60% capital employed at any given time (gives one a cushion). This is all virtual – if it was real I wouldn’t be talking about it. Not bad for a month but I must see how this does in an uptrend, shouldn’t lose all the profits! So too early to call.

Disclosure: No positions. Standard fundas apply – this is not advice, it’s education, and it’s not meant to have anyone trade it with real money. Please don’t do this because I’m saying something.


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