My Bank Nifty Options trading diary

pannet1

Well-Known Member
Bro.. 2 months is a long time.. Lets have your weekly update ... :)

What happened to your mentor.. has he approved giving money to some 3rd party to trade ?
No Raj,

Actually he is the 3rd Party and Mentor. I have given money to him and he will trade and provide assured income of 5% p/m. Besides I get to see what he trades (with explanation). So once I am thorough i can trade myself.
 

pannet1

Well-Known Member
todays view

copper

View attachment 26213

zinc

View attachment 26214

Gold

Doji present low risk sell opportunity

View attachment 26215
Gold hit a small Stop Loss

Zinc Price jumped a probable Sell Trigger, so have to witness the downfall in awe.

Copper Sell Order triggered and quickly climbed up and almost reached near the previous day high. If a SL was kept, will it be hit or not. i believe in a rigged market price need not breach to trigger the Stop Loss. Other than that it was a super profit.
 

pannet1

Well-Known Member
NICKEL, COPPER, LEAD and ZINC all closed up yesterday. Since all are in bearish trend, we look for the break down on yesterday's Low.
of all ZINC is very near to the Lowest of recent daily bars ... (lowest was made by yesterday long tail). So if we enter at the break of previous day low, we have an early entry.

1530072939586.png
 

pannet1

Well-Known Member
Maybe this question is not ideal for this thread and I don't know how to start a new thread.
Suppose I have a cash portfolio of Rs 5000000 and I want to start writing covered calls or cash puts. I own the stock and I am not worried if my call gets assigned as my cash portfolio would increase to more than my initial cash portfolio though I can't partake on further opportunities of profit. however my main concern is,if the covered call is not assigned and the stock price falls below and I get to keep the stock, but then my cash portfolio which includes the shares is worth less than initial cash portfolio . With the stock I get to rewrite a covered call and then the whole scenario repeats and it dwindles the cash portfolio even more.
How Can it be hedged to protect the portfolio?
Regarding to selling puts , do I get assigned to buy the stock? I won't mind buying the stock at relatively cheaper prices.
from a investor perspective
-----
Assuming you own a bullish stock. You want to protect the downside ... you buy a put .... you subsidize that selling a call .. you reduce the margin by pledging the stock.

Always you have the risk of your portfolio getting hit till the strike price of the PUT. the tradeoff is limiting the upside potential of the stock for buying protection.

from a trader perspective
----
you sell the put and but slight out of money PUT depending on your risk appetite

however there is a better way to participate in the bullish run, which is a PUT ladder ... where you sell a PUT and then buy a PUT below that and then sell another PUT.

the main worry is define BULLISH stock
 
from a investor perspective
-----
Assuming you own a bullish stock. You want to protect the downside ... you buy a put .... you subsidize that selling a call .. you reduce the margin by pledging the stock.

Always you have the risk of your portfolio getting hit till the strike price of the PUT. the tradeoff is limiting the upside potential of the stock for buying protection.

from a trader perspective
----
you sell the put and but slight out of money PUT depending on your risk appetite

however there is a better way to participate in the bullish run, which is a PUT ladder ... where you sell a PUT and then buy a PUT below that and then sell another PUT.

the main worry is define BULLISH stock
Thanks, I do really appreciate your answer.
I am sorry to ask you again , what is a put ladder as you mentioned in your post?
Vatsal
 

pannet1

Well-Known Member
Thanks, I do really appreciate your answer.
I am sorry to ask you again , what is a put ladder as you mentioned in your post?
Vatsal
1)
PUT ladder is a very colloquial name.

Take a standard collar .... instead of just buying a PUT ... you sell a PUT below the Long PUT.
The assumption here is your BULLISH stock will never make your Short PUT in the money.

Otherwise instead of being long stock ...... if you buy ITM call and if you select strikes in such a way that you dont have unlimited loss on either side.

2)
Then you have a dynamic collar
 

Similar threads