Trading Stock Options :: Experimental

I would be posting my "paper trades" on stock options. This is some experiment to prove that you can actually make money trading stock options when majority of people avoid Stock Options for trading.

These will be swing calls and max it will be opened for 2 months. I will be only a Buyer of Stock Options and max I will buy for the next month.


I should post my ideas here.. and please feel free to read it and trade it only if you are ready to lose your money.

Lets see how it goes... to keep a track I am starting with a Virtual Capital of just 25,000/- which should be good enough for a new investor/trader.


Max open positions at a time will be 5 trades.

Compete trade sheet is available here

http://spreadsheets.google.com/ccc?key=0AsC1qV6Wtd1xdEo5TWJiWDhlcFVzT0lFY0Zzekh6c1E&hl=en

Reserved for Ledger

Two trades done today...

ACC 950PA 29APR @ 30 , Stop @ 1025 in SPOT
AMBUJACEM 115PA 29APR @ 3 , Stop @ 125 in SPOT

Target is open.

Initial Capital 25000
Margin Used 23239.6
Margin Available 1760.4


(excluding any brokerage generated)

Look forward to some "real" lessons through this thread!!
Wondering aloud : Is it advisable to bet entirely on the same sector!!??

The SL specified by you, is it on closing basis or intraday basis?
Thanks.

SL is closing... and then yeh I thought about the same sector thing but now trade is executed ... I have couple more trade ideas but ran out of capital

the picture is looking little scary as majority of counters from Nifty-Fifty are looking for a good correction not sure what is in the cards.

Two more trades in the wishlist... but no capital to trade them. Keeping a eye on them..

BHARTIARTL 300PA @ 8.5 for April
CIPLA 340PA @ 11 for April

Just a thought : Would it be less risky to trade equal positions in Call and Put. We select such stock which is in Uptrend to Buy Call and another stock in downtrend to Buy a Put! You use whatever parameters u are using to select the stocks but select stocks with opposing trends. Like : Buy Nifty Call and Buy Relaince Put (ofcourse if your parameters have given Buy in Nifty and a Sell in Reliance!!
This may be more true if the stocks are in the same Sector. People use this strategy to do "Pair Trading"!!

Vikas, Have a look at Chambal for upside!!

It should not go more than 66-67... its just a retracement bounce after it touched the down target. I sold it at 70, target was 58 and it touched 57.5 as the recent low and then bouncing back to retrace 50% or max 61.8%... if its able to surpass 61.8% then possible 100% retracement to 70+ levels while chances are remote

See it here http://www.traderji.com/swing-trading/38079-wolfewave-swing-calls.html#post410446