Trading for Living -- Successfully Completed one year as Full Time Trader

[amrutham]

Entered into below stock option position for Sept expiry.

Tatamotors Spot @ 260

Sell Tatamotors 250 PE 1500 Qty@ 5.2

Credit = 7.8K

Planning to hold till expiry.

 

[amrutham]

Entered into below NF position for Sept expiry.

NF Spot @ 11670

Buy NF 11700 PE 450 Qty @ 128
Sell NF 11600 PE 450 Qty @ 92
Sell NF 11300 PE 450 Qty @ 35

Net Debit = 450

Planning to hold it, until NF breaks 11500 on downside.

 

[amrutham]

Entered into below BN position for Sept 06th expiry.

BN Spot @ 28070

Buy BN 28300 PE 200 Qty@245
Sell BN 28200 PE 200 Qty@188
Sell BN 27700 PE 200 Qty@ 48

Debit = 1800

 

[amrutham]

Aug 2018 - Zerodha Accounts Review

Combined net profit for the month is around 2.3 lakhs, which is around 4% of the capital.


Performance wise it is an average month and the BN positions required lots of adjustments. As a result brokerages and other charges are very high for the month and needs to keep them in check for the month of Sept.

Gross profit is around 2.85 lakhs and total charges are around 54K.

 

[milind2754]

Entered into below NF position for Sept expiry.

NF Spot @ 11670

Buy NF 11700 PE 450 Qty @ 128
Sell NF 11600 PE 450 Qty @ 92
Sell NF 11300 PE 450 Qty @ 35

Net Debit = 450

Planning to hold it, until NF breaks 11500 on downside.

amrutham as per open interest nifty 11600 support. hence PE's are taken instead of CE's

 

[milind2754]

Entered into below BN position for Sept 06th expiry.

BN Spot @ 28070

Buy BN 28300 PE 200 Qty@245
Sell BN 28200 PE 200 Qty@188
Sell BN 27700 PE 200 Qty@ 48

Debit = 1800

amrutham sir why PE's are taken and why not CE's ?

 

[amrutham]

amrutham as per open interest nifty 11600 support. hence PE's are taken instead of CE's

This trade was taken expecting NF to be in a broad range of 11350 -11800 for this month. If it breaches any of these levels, needs to be adjusted.

 

[amrutham]

amrutham sir why PE's are taken and why not CE's ?

Generally with PEs the initial debit is less, when compared to similar setups with CEs.

 

[Rajeevji]

After starting full time, we lost one Z challenge and learnt very valuable lesson with that.

For that challenge, we were actually in profit at the beginning of the last day (25th Oct 2017). We were short 560 Qty BN CEs and BN gap up with around 1000 points and gave as a big loss of around 4L that day.

Never thought CEs can do that much damage. From that day we are very careful with naked short options.

24000 CE 560 Qty sold at 170 on 23rd Oct and bought back at 909 on 25th Oct.

View attachment 24888

Thanks for posting this. For first time I am understanding from a real-life example how a Black Swan does damage. Regards Rajeev

 

[amrutham]

Thanks for posting this. For first time I am understanding from a real-life example how a Black Swan does damage. Regards Rajeev

I don't think I will forget this trade in my trading career. Whenever I take any naked position, this trade comes into my mind .