Long 10 years: Finally started Diary

just near the closing took pair trade......shorted 7500 call and 7300 put.......with total premium of 205 points......lets see what we get in this trade..... i m taking risk (without any hedge) as expiry is constrained between these 200 points......max probability

Shorting Nifty Feb future at 7445 and shorting 7400 put at 130.......SL sustaining abv 7490

Expiry special: Risky: Shorted 140 call powergrid at 0.95......SL sustaining above 141........

As IV increased, total premium rises to 215......so shorted 7500 call and 7300 put

Now avg is 210 points............SL sustaining above 7490........if happened after expiry.........even after hit of SL, i might get out with minor profit........

missed to saw that yesterday was a result day for powergrid.......whole option chain changed......rarely happen just before expiry.........anyways took loss of 1 point

and other SL is sustaining below 7320.........

Exiting my trades with 30 point loss........will wait for next set-up

3rd SL hit in total of 8 trades so far but still ended Month with more than 150 points per lot in nifty.....

Sl hit so exited trades with 8 points profit.........

Since 7610-20 was previous support so taking short treating it like a resistance......

1. Shorted NF at 7597 and 7600 put at 117 as a hedge........ Sl will be sustaining above 7620.......

my all levels of spot and tgt are spot levels........trade is only at NF level

2. Since 150 is a major resistance for powergrid, took 150 call at 3.4.... unhedge for time being

after losing almost 3.5 point in two trades...may be become third time lucky.....

i know there is no luck in trading LUCK only means - LABOUR UNDER CORRECT KNOWLEDGE

but kind of habit saying i m lucky or not

jassi

Hi

Have you checked the effect of this type of hedge . . .

The net effect would be reduce 1/2 of the risk and also reduce profit/loss by 1/2 (i.e. make the delta 50%)
so can it not be more effective / or easier to just build 1/2 size of the position w/o any hedge

The above applies only if you trade multiple lots, which I assume you are doing . . .


Happy