Option Selling during quarterly results

[sanju005ind]

But these are not a hedge positions ... more puts value were sold which generated the positive return. Ideally when we target value from time decay, we can say it positive trade only when the profit comes from time decay with equal delta positions at any point during the trade and adjustments cycle. Here I guess the loss from directional movement exceeded the profit from time decay. And the profit we see here is from excess put selling.

And also ideally 11600 strikes should be there in the positions which are missing. Had it been there that would increase the loss.
I guess I dint read thing wrong. Let me know your views.

Yes Bro you are right. My Original position was Central straddle at 11700 and then both sides 11500 and 11900. I keep these gaps just in case i have to adjust. I rarely had to adjust in all my previous trades. In this particular trade. The market was trending up and volatility was also rising thus negating/delaying the time decay. So to keep moving the breakeven points on the upside i was selling puts. I know that i did not close this position efficiently since I did not have power since night due to heavy rains in Hyd. Power came back only by 2:30PM (My inverter died by morning 6 AM). I cant read charts properly on mobile. Hence closed the positions

Most of the times when I sell on Wednesday I get good premiums by Friday and I close it. Then again i open fresh positions on Friday and close on Wednesday and open fresh positions for the following week. I target 2-4% a week. This particular technique allows me plenty of free time I don't even look at the charts for this. Neither I worry about greeks.I go about doing office work and household work.

By the way for trend following in Futures my Algo in live testing is also performing good. Very soon I will be deploying it Probably end of year.

 

[checkmate7]

Yes Bro you are right. My Original position was Central straddle at 11700 and then both sides 11500 and 11900. I keep these gaps just in case i have to adjust. I rarely had to adjust in all my previous trades. In this particular trade. The market was trending up and volatility was also rising thus negating/delaying the time decay. So to keep moving the breakeven points on the upside i was selling puts. I know that i did not close this position efficiently since I did not have power since night due to heavy rains in Hyd. Power came back only by 2:30PM (My inverter died by morning 6 AM). I cant read charts properly on mobile. Hence closed the positions

Most of the times when I sell on Wednesday I get good premiums by Friday and I close it. Then again i open fresh positions on Friday and close on Wednesday and open fresh positions for the following week. I target 2-4% a week. This particular technique allows me plenty of free time I don't even look at the charts for this. Neither I worry about greeks.I go about doing office work and household work.

By the way for trend following in Futures my Algo in live testing is also performing good. Very soon I will be deploying it Probably end of year.

So what was the position you initiated yesterday?

 

[sanju005ind]

So what was the position you initiated yesterday?

Not Yet initiated. Will wait today and see for which will be the central straddle and 11900 or 12K. and then will do it.

 

[checkmate7]

Not Yet initiated. Will wait today and see for which will be the central straddle and 11900 or 12K. and then will do it.

How do you decide when to initiate trade based on what parameters?

 

[sanju005ind]

How do you decide when to initiate trade based on what parameters?

I look for IV to increase and the try to anticipate reasonable range. Now it is consolidating right below 12k. Which indicates that the breakout will could be successful. a Few days ago it travelled long distance so by the time it neared 12 K it lost steam. Now I believe it is taking rest for breakout. Hence would like to see how todays expiry goes.

 

[landorra]

Depends on what does a BlackSwan means for individual. For me what happened in March 2020 is not balckswan. Since it was not something which caught me unawares. Sure the intensity and speed of the fall was great. But there were enough signs to stay away or be cautious.Demon in 2016 was balckswan. First thing in a balckswan is to keep calm and the wait for some time to observe and take a decision. Gujarat elections vote counting mornning was a another example. Surgical strike was another. A ship is built to sail the vast oceans what good is it if anchored in the harbor.

Interesting explanation. I would partially disagree on what happened on March 2020, though. However, I see you offere a coherent view of your trading policy. That is good.

 

[sanju005ind]

Interesting explanation. I would partially disagree on what happened on March 2020, though. However, I see you offere a coherent view of your trading policy. That is good.

divergent views are always welcome.
As Bill Williams said " A trade happens when two people disagree on value and but agree on price".

 

[sanju005ind]

@siddhant4u I am creating a position(Real Account) in Nov Series with delta ~15 on both sides. Time is also nice since IV has been rising.
We will Adjust at the max one and rarely twice if any side of the leg is being tested. We Will Start Exiting the position Once we get 50%-80% of the premium received. Next week if the market stays around the same levels we will not create position. If the market moves we will create fresh position with Delta 15 and so on for the week after. We will track them EOD/EOW. what you say.

Updating the Strangle laddering position we created last week we name it Week1. Today created a second position similarly. We will name it Week 2. We will revisit the postition again next friday or if any leg is being tested or closed.

Week 2

 

[sharktooth]

@Sanju Sir, May be this is a silly question, but How do you decide when to exit the positions?

 

[sanju005ind]

@Sanju Sir, May be this is a silly question, but How do you decide when to exit the positions?

Once the position reaches 50-80% of initial premiums credited.Even get out nearing expiry so that next series with more premiums can be taken.