Vertigo, all those factors also hint towards waiting of big boys.
I regret closing my call options trade so soon, but if we leave yesterday price action, then before that, nifty was clearly showing weakness. No real upside momentum of any kind. Moreover I had down bias for the overall markets "which I still have". But that down move will most probably happen only on 16 May, if NDA does not get a clear majority.
So I will have to wait before buying any puts. I did a quick scan of the markets and a lot of stock puts have gone down by 20-30 % yesterday. If markets go up again on Monday, then these puts will become even cheaper. And I will buy them at that time. I admit that my down bias might be wrong, but the bear within me will not die until I burn atleast 20-30k on buying cheap OTM puts of high beta stocks. :annoyed:
I can afford to loose this money, provided the risk reward ratio is extremely favorable in those selected puts. In the scenario of a major down move in the markets, because of disappointing election results for the bulls.
I regret closing my call options trade so soon, but if we leave yesterday price action, then before that, nifty was clearly showing weakness. No real upside momentum of any kind. Moreover I had down bias for the overall markets "which I still have". But that down move will most probably happen only on 16 May, if NDA does not get a clear majority.
So I will have to wait before buying any puts. I did a quick scan of the markets and a lot of stock puts have gone down by 20-30 % yesterday. If markets go up again on Monday, then these puts will become even cheaper. And I will buy them at that time. I admit that my down bias might be wrong, but the bear within me will not die until I burn atleast 20-30k on buying cheap OTM puts of high beta stocks. :annoyed:
I can afford to loose this money, provided the risk reward ratio is extremely favorable in those selected puts. In the scenario of a major down move in the markets, because of disappointing election results for the bulls.
i understand that you are bearish but dont fight the market, whats the logic to sell when market says buy ? sure you can lose 20-30k now but what about 5-10 more trades likes these ? can you lose all of them and still will be comfortable ? with this attitude you are going to get burned both financially and psychologically, think in long terms.
Have a bearish view but be ready to be bullish as well. Let market confirm that its bearish, how charts have to look like that its bearish ? or how overall market should look like if its bearish ? then only put on a trade.