Escape's Trading Diary - Options

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Hi Jeareh,

I'm trying to achieve same.
Options trading is high risk and high gain.

As per expert, it is known that with Options strategies (paired Options strategies) is ideal way of trading. Even DanPickUp supports this. This is true if you are trading Options and keeping it for some time (more than a day).

The bigger risk in naked Options trading is keeping it overnight.

What I'm trying to achieve is to trade Options on intraday basis, so I don't have to keep it to next day. Just square-off Options very same day.

Even I'm new to Options trading, not an expert. Until now, I'm loosing money.

As informed above by manojborle, I hope with discipline, risk management (only with SL) and money management, it can be traded for reasonable profit.

You can keep eye on this thread and see result how I does it.

Thank you.
Escape

Hi Escape,

I was going through your post. Great. Keep posting your trades.

As Dan was asking, will naked option trade brings loss in long run?
Is option strategies must for option trade?

You look very comfortable with your style of naked option trade.
I think if you have good planned strategy with dicipline and MM, you can do better in this kind of trade.
No hedging, No writing of option and No option strategy is needed. Do you accept.

Happy option trade.

for intraday trading , I think no strategy is required.
I am trading options on intraday basis and I take positions based on underlying chart

 

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Bought NIFTY 27Sep2012 CE 5200 @ 107.90, SL @ 96.00, CMP 107.15

 

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Bought NIFTY 27Sep2012 CE 5200 @ 107.90, SL @ 96.00, CMP 107.15

SL changed to 99, CMP 105.25

 

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SL changed to 99, CMP 105.25

SL now 109.90, CMP 114

 

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SL now 109.90, CMP 114

SL now 114, CMP 117

 

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SL now 114, CMP 117

EXIT @ 116.25, Profit of 8.35 points, less brokerages.

 

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Here is log as of last session.

Log:
NIFTY OPT 27SEP 12 CE @ 5200 (B)50 @109.10 (S)50 @ 116.25 +357.50

Result:
After deducting all charges: Rs +342.56

Capital Status:
Exact Initial Capital: Rs. 15746
Current Ledger balance Rs. 15514 (-232)

Learning:
Yesterday's trading was almost exactly like a day before.

Initially market was range-bound, so I placed two orders (PE 5400 and CE 5200), both limit order, both with some points above day's high for each. I patiently waited for breakout.

My order for CE 5200 got executed, but it still got stuck with new range. Later on it broke to upside. As CE 5200 reached near 10 points above my buy rate, I changed SL near to CMP and exited with around 8 points gain.

Ended day with positive result of around 6 points gain.

In terms of Rupees, it is not huge gain (as I'm trading only one lot, until end of phase 1), but yes at the end I'm getting positive results.

 

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Bought Nifty 27sep2012 PE 5400 @ 92.75, SL @ 81.00, CMP 92.45

 

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Bought Nifty 27sep2012 CE 5300 @ 100.80, SL @ 90.00, CMP 99.50

Have two positions open, CE and PE each.
Need to take care of Stop Loss cautiously.

 

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Bought Nifty 27sep2012 CE 5300 @ 100.80, SL @ 90.00, CMP 99.50

Have two positions open, CE and PE each.
Need to take care of Stop Loss cautiously.

I'm reducing initial SL to 86 instead of 90. CMP is 96