ITC has been continuously stomping north since 02 Mar 2010. From low of 115 it closed at 168.3 on 17th Sep. In this rise it had completed the five wave pattern of Elliot wave. That was a cue for me to contemplate going short in the scrip. Since it was making new highs every fortnight, it was only by extrapolating that I could come to a fair sell price in uncharted territory. And I arrived at 173 as fair point to short the scrip.
Hence on next trading session on 20th Sep I advised my subscribers at http://www.stockezy.com/ to sell ITC Sep Futures at 172.5/173. I also asked them to buy one lot ITC Sep 170 Put at 1.0/1.5 But after my subscribers took action as per my recommendation the scrip started sideways movement between 174 and 175. But in the last half hour before market close, the scrip bolted to day high of 178. However before market close I advised my subscribers to buy one more lot of ITC Sep 170 Put at 0.75/0.8, which they did.
Finally today we escaped from the clutches of ITC with profit ranging from Rs 2000/- to Rs 5000/-. The Puts had helped us get out of a tight situation. In the whole drama, as it unfolded before our screen, I was simply amazed by the faith that my subscribers reposed on my call, even when their MTM losses were mounting to five digits. I feel grateful that I have a club with members so understanding and dependable that they act on my advice, even during crisis times. It is their support which has allowed me to close 40 derivatives trades at a stretch in profit. You may like to take a peek at the trading room activities in ITC through the following links:-