My Bank Nifty Options trading diary

pannet1

Well-Known Member
#42


BN just broke the resistance on the monthly time frame. so the idea is to go to whichever time frame one is comfortable and buy the dips. since i am already taken a short strangle position at 17000PE/19000CE, the plan is to buy 18500CE for intraday. while i was monitoring the 18500CE price chart 10 minutes bearish bar just made a high at 192ish. within few moments underlying price was moving between 18100 and 18200 range. before i could figure out how to to put a Buy stop order in Kite, price had moved fast past 192 to around 195. somehow i entered into the market and managed to get a 10 points and exit.

then i was noticing the price again dipped and now trading around 196. so in order to get into another buy position if it breaks the recent 198ish bearish bar, i wanted to enter a buy stop order. in another platform a buy stop order means price has to trade below your order and for the order to trigger it has to get past your buy stop order price. unfortunately when i entered a limit order at 198ish the order became market order and got a position immediately. though the price moved up little bit, it did not get till my target price of plus 10 points. as a result i have to get out with a SL of 2 points as price was going down fast.

this could be only a ploy to take out all SL of buy orders. whatsoever it does not matter because i was still plus at the end of the day and there is always another (intra)day.
 

pannet1

Well-Known Member
#43
Instrument Qty. P&L
17000PE -40 +1372.00
19500CE -40 +180.00
19000CE 0 -346.00
Total 1,206


At this speed of about 100 points a day, soon we will be at 18500 and thus dangerously close to the 19000CE of the strange. so i closed it for -10 points and then again sold the 19500CE.
 

pannet1

Well-Known Member
#44
SPOT closed at 18084.90

4HR time frame took out the MPL in the morning session. this could be just a ploy to take out all the loose hands and their SL. Anyway, I am bearish now.

BANKNIFTY16JUL17000PE
QTY: -40
AVG: 96.00
LTP: 42.00
P&L:+2160.00

BANKNIFTY16JUL19500CE
QTY: -40
AVG: 16.00
LTP: 7.10
P&L: +356.00

TOTAL: +2516

 

pannet1

Well-Known Member
#45
hi denzo, when someone doesn't tell the technical side of it, then it is right to bash.
here I am trying to buy call or put intraday based on bullish or bearish view.
so I think now they don't have any reason for bashing.
the credit goes to you for showing me the right path. funniest part is market pays for doing nothing.
thanks so much brother once again.

Sent from my 6043D using Tapatalk
 

pannet1

Well-Known Member
#46


spot closed on 18016.25

- I bought back the 19500CE for a small profit.
- i bought a new (intraday) 17500PE in the morning with a target of 20 points. but price went back like an elastic and i had to close it for a small loss.
- I sold a new 19000CE which had already lost nearly 50% of its value since morning.

observation: i made a blunder few days before by jumping the gun. what i mean is i rolled the 19000CE up which had proved a loss in my profit because 19500CE looses lesser premium than 19000CE. Due to this i am also forced to re-enter 19000CE for a smaller premium.

Lesson Learnt :Stick to the plan that one should never touch the loosing side of the strangle. Counter volatility with intra-day buys of Calls and Puts.

Present positions:-

BANKNIFTY16JUL17000PE
QTY: -40
AVG: 96.00
LTP: 41.60
P&L: +2176.00

BANKNIFTY16JUL19000CE
QTY: -40
AV: 23.75
LTP: 25.00
P&L: -50.00
-----------------
TTL: +2126
-----------------
 
Last edited:

pannet1

Well-Known Member
#48
Spot closed at 18390.95

i was away from trading today. i believe i would have got some profit today intraday if i was there.

as perceived 4HR all bears got killed with this huge gap about 300 points above 18000. i believe 4HR is becoming lot unreliable due to the gaps. who will follow the trend this way if its bearish one day and bullish the next day.

since the view is now bullish, i have to wait for 1HR bearish bar and then a break above or may be even some lower time frame tomorrow. also should look at closing the 17000PE Short leg for profit and opening a new 17500PE short leg.

yes, this will be against the rule but at least look at capturing getting a 20-25 rupee additional premium.

BANKNIFTY16JUL17000PE
QTY: -40
AVG: 96.00
LTP: 13.60
+3296.00

BANKNIFTY16JUL19000CE
QTY: -40
AVG: 23.75
LTP: 65.50
-1670.00

TTL: 1,626
 

pannet1

Well-Known Member
#49
spot closed at 18667

see below image for chronological sequence of events.


- since bn breached 18500, i closed the 17000PE and sold 17500PE. since i had a bullish outlook i wanted to long 18500CE on 10MIN time frame. then came the surprise that i was short of cash. so it was natural for me to select the 19000CE to go long.

- WTF. you guessed it right. this means i have unknowingly closed the 19000 short leg.

- meanwhile the strangle lost nearly 800 rs. so i decided to keep 175000PE as a naked short with a SL order at the same price i sold in a cunning move the price moved exactly to my SL and got squared off.

- this way i was out of all my positions and had to be content with 2% this month.

- i made a post mortem what if i had enough money to buy the 18500CE at 273.. i would have got my usual 20 point target and again would have got greedy and entered only to give it back to the market. if you look at the 18500CE chart today, you would have noticed the big bearish bar capable of taking out many SL before making the 90 point move.

- so what should one do. take que from the 1hr chart. one have 6 opportunities to enter (at every hour's 15th minute)?

see below for the details of order rejection.
 

pannet1

Well-Known Member
#50
13jul2015

"idle man's mind is devils workshop" :)

so i decided to try out diagonal spread since you have another two weeks for the expiration and can't short strangles till then.

basically diagonal spreads are to buy long term options and sell the short term one.

so
long jul 18800CE ATM at 207 or so and
sold 14jul weekly 19000CE at 20 or so

then i realized that this is a peanut which i am trying to achieve on the sell side. so sold 21jul weekly 19000CE additional at 56 or so.

could not stomach 2 sold options overnight and hence covered the 14jul option for a small profit.

14jul
-----
today the long jul monthly 18800CE became in the money and the shorted 21jul weekly 19000 was also close to becoming in the money.

the spread was slowly coming close to 2000 profit. in order to reduce the risk of weekend gap i decided to close the spread at around 3.15 p.m.

so i was putting SL-M order at lower price for buying back the shorted weekly and higher price for the selling back the bought monthly option by pressing the exit button of my open positions.

i was doing this all from my mobile. kite was showing 2000 plus and i was quite exited because i made 2% in 2 day far better ROI than the strangle.

in this process i had put 4 buy orders in total. so one ended up squaring off the weekly sell option and the other 3 are open. i was shocked so i have now 3 x 19000CE buy positions open which i never wanted in the first place.

inexperience is costly. now i am praying all gods that the market should not gap down next monday and should atleast start from the same place where it closed today. :down:
 

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