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

[anildnr]

VIX is just 19 , This is not too much volatility ! 2008-2009 is the real time. I never had chance to try out options at that time, but who ever was profitable selling options at that time must have deep expertise and would have minted lots of money in low VIX period like from past 3-4 years ! If we cant survive at 19 , think what will happen when VIX goes to 30+ which was very normal ?? This criticism applies to me also . I cannot survive in VIX of 20 , I will die in VIX of 30+ (Only selling options considered ) Options buying is directional play and it requires luck and correctness about the direction

Agree with you friend..as i wrote in my post we should know managing options when our position is going into losses(even though it is defined loss like in butterfly strategies). As mycall said we should have money ready to manage the losses. As bn is having weekly expiry even with high vix we can try to get into profits atleast we can come out with minimal losses

 

[mycall]

Hello Guys... VIX is a more of a devil than a friend for option trader... specially retail traders like us who like to earn quick bucks selling options... I have seen VIX 29-30... when I used to trade Iron Condor in NF and used to earn 3% each month pretty coolly... in highly volatile market I personally suggest ratio spread rather than naked short... so that the trader always has option at hand...

my buddy is in a grave situation holding 26800PE short which he could not exit due to his non availability... he keeps busy all day... most of the days... but I know he is managing it... and will come around... he had such experience earlier also...

Higher VIX means higher premium in option... but there is higher volatility too... means there is higher chance of strike become ATM or ITM... to me in such conditions... ratio spread is better than naked short... if at all naked short is to be taken... then target a strike beyond a major S/R level and should be taken on the move... just to catch high vega...

Last week I took debit spread at 24500PE/24400PE and shorted 24000PE naked at a total credit of 11pts... exited the position with total 14 pts profit...

Also took Credit Spread in 25600/25700CE which became scary at the mid stage...

Due to USD condition market tanked...

 

[anildnr]

It seems there is too much volatality in banknifty before rbi event. Calls are increasing very fast with small increase in bank nifty spot. Puts also not decreasing that much. Better to exit positions before rbi announcement as there is a chance of drastic fall in premiums until n unless miracles from rbi.

 

[mycall]

market perception is Repo rate increase by 25basis pts

This is classic time to build cash portfolio... will give good return when market returns to green...

 

[jyotixxx]

What Was That ​

 

[anildnr]

Punishment if we dont learn lessons ...shorted 23500pe at 32 at 2 30pm after rbi announcement..it went to 17.2. I placed limit order for 17rs..it was not executed and went up n up finally i exited at 60rupees....

I should have exited at market price when it was at 17.2 or else atleast i should have modified to sl at my cost price i.e 32 rupees.....
Need to adjust positions without any greed or take watever amount u get in this market

 

[VJAY]

So market actually REAL testing you/us all and giving teaching how you need to handle market in volatile...some newbies mostly not seen these type of moves might vanished from market today.....

 

[mvrams]

Hi Everyone,

I am following this forum for last 4 years and this is my first post.

I was a software engineer by profession and worked in the filed for 12 years. Finally I quit my job in Jan 2017 and started full time trading.

I am into trading for last 9 years, mostly options trading.
In the beginning of my trading career I used to buy options mostly. Some times I win and some times i lose.

After accumulating enough capital from my job earnings, I quit my job last year and started trading.

Since Jan 2017,, I am able to generate consistent income by writing options. In the last FY 2017-2018, I am able to generate profit more than my last annual salary.

Its mostly Nifty current month options and BN weekly options and occasionally stock options.

To be continued..

Great .congrats boss.. can you tellus whiich strategy you follow most frequently and both NIFTY & BNF ??

 

[anildnr]

So market actually REAL testing you/us all and giving teaching how you need to handle market in volatile...some newbies mostly not seen these type of moves might vanished from market today.....

Yes really vijay..but most painful thing is profit turning into loss

 

[mycall]

This is the reason I expressed my worries multiple times in TJ for my friends to stay away from the market... definitely this is not the market for 'trading'... specially for retail traders...

I also surprised to see BNF jumped to 25000+ and USD from around 73.80 to 74.30... simultaneously... I got too worried and alerted my friend to take care... within a few seconds... BNF dropped 300-350 pts...

Too many things going on friends... please stay safe... chart is not working... don't follow chart in these conditions... rather just don't trade... just watch the show... and if possible 'build your portfolio' so that if and when market regains its glory... we can have our fair share in that...

Good luck and best wishes to all