An investor can never control market movement, as this is a function of numerous variables. But an investor can certainly control his/her response to market movements.
In all the recent turmoil in markets across major parts of the globe, there was one last market standing: the US equity market.
It is rare for buyers of both call and put options to be caught on the wrong foot. But it happened last week. All who had bought call options on Wednesday were in losses on Thursday.
At least, now no one can say the Nifty is not reflecting the broader market decline. Finally, last week, the Nifty too joined the crash course, in full force.
For the third week in a row, traders with long positions on put options have enjoyed an upper hand in the derivative market as they could log both intraday and intraweek gains.
For all those traders who had forgotten that taking short position is also a trade, the September series was a reminder that a trade can be placed in both directions.
The current corrective phase in the stock market would, in all probability, run for more time.
The Nifty remained under pressure last week, as some large-cap private sector financial stocks continued their southward journey.
Contracts for the September series are scheduled to close this Thursday. The expiry week is usually a test of the market’s balance.
The market can spring a surprise anytime. Consider this. Oil prices have been rising for the past many months and their coming close to the $80-mark is nothing new or unexpected.