My Bank Nifty Options trading diary

#61
The sell side is showing profit. So I tried to double up that side. But market continue to take my SL out. Hence got so far Rs 1500. Still trying to make the unrealised profit to green.

Code:
Instrument		Qty.	price	P&L
BANKNIFTY02FEB1719600PE	-40	182	-586
BANKNIFTY17FEB19500PE	40	384.8	-3316
BANKNIFTY02FEB1719400PE	0	0	940
BANKNIFTY02FEB1719500PE	0	0	560
			
					-2402

Noble endeavor Pannet1. :clapping::clapping::clapping:

What was your approach for your continuous persistence as many in your position would have thrown the towel.
 

pannet1

Well-Known Member
#62
Noble endeavor Pannet1. :clapping::clapping::clapping:

What was your approach for your continuous persistence as many in your position would have thrown the towel.
I do not have any work presently. My spouse is going to work. We have a toddler whom i have to baby sit after he returns from kinder garden. I could some how get a job but i don't think i can get a job out of the city in a specific working hours.

obviously if you have trading success, everything else in your life follows. without backtesting i have a hunch that i will be successful. Many will say i am stupid to conclude like this. i know clearly because i see the reality not with wishful thinking.

without any of the trading complexities imagine the below where the amount x and y are unrealised loss.

Code:
Sold an instrument = -x amount
Bought an instrument  = -y amount
Net profit = -z amount
We are just trying to make the net profit = 0 or +ve figure. The opportunity presents itself when the market moves in either direction and you just need to try to double up the winning side.

The beauty of options trading is even if we assume that the market is sideways still you will make money due to time decay.

just my 5 paisa
 
#63
Hi

Can you explain what you are doing . . .

From the position it seems you are into Bull Put (Credit) Spread with Calendar Spread making it a debit spread . . .

Like the idea of adding to the winning side, would like to know what kind of scaling capacity you have and time horizons


BTW, if any thing of your system/method is propitiatory and can't be shared, then no issues . . .


All the Best

Happy :)




EDIT: Ok google tells me its called Diagonal Spread, so how do you scale into the winning side?
 
Last edited:

pannet1

Well-Known Member
#64
Wow. Sardar. Its great for your goodself gracing this thread with thy presence.

On the expiry day of a month, begin with a Calendar Spread or Diagonal

1)
Buy Monthly
Sell Weekly

100% of the time this is a debit spread because your monthly's premium will be always high and the spread difference is always 100 or 0.

Depending upon the view of the market you could either Sell the weekly above the current price or below. We are talking about PUTs in this case and all further reference are for PUTs. Though we could construct this with CALLs also. This decision thought process, we will take it up later.

Again Monthly is bought one strike below the Sold strike or on the same strike price or one strike above. This depends on your view of the market and your risk taking ability. There is a tremendous room for adjustments (means profit :) every time we make adjustments. This is because we adjust only when one side is moving into profit.

We need to become very aggressive if either of the contracts move into profit and we need to add to the winning side. When adding to the winning side we need to add same type of contract for that side i.e Sell Weekly or Buy Monthly. Thus we should try to make the total equation positive.
 
#65
I do not have any work presently. My spouse is going to work. We have a toddler whom i have to baby sit after he returns from kinder garden. I could some how get a job but i don't think i can get a job out of the city in a specific working hours.

obviously if you have trading success, everything else in your life follows. without backtesting i have a hunch that i will be successful. Many will say i am stupid to conclude like this. i know clearly because i see the reality not with wishful thinking.

without any of the trading complexities imagine the below where the amount x and y are unrealised loss.

Code:
Sold an instrument = -x amount
Bought an instrument  = -y amount
Net profit = -z amount
We are just trying to make the net profit = 0 or +ve figure. The opportunity presents itself when the market moves in either direction and you just need to try to double up the winning side.

The beauty of options trading is even if we assume that the market is sideways still you will make money due to time decay.

just my 5 paisa
Thanks Pannet for the brutal honesty and your approach to trading and life. Great to have made your acquaintance....
:thumb:
 
#66
Wow. Sardar. Its great for your goodself gracing this thread with thy presence.

On the expiry day of a month, begin with a Calendar Spread or Diagonal

1)
Buy Monthly
Sell Weekly

100% of the time this is a debit spread because your monthly's premium will be always high and the spread difference is always 100 or 0.

Depending upon the view of the market you could either Sell the weekly above the current price or below. We are talking about PUTs in this case and all further reference are for PUTs. Though we could construct this with CALLs also. This decision thought process, we will take it up later.

Again Monthly is bought one strike below the Sold strike or on the same strike price or one strike above. This depends on your view of the market and your risk taking ability. There is a tremendous room for adjustments (means profit :) every time we make adjustments. This is because we adjust only when one side is moving into profit.

We need to become very aggressive if either of the contracts move into profit and we need to add to the winning side. When adding to the winning side we need to add same type of contract for that side i.e Sell Weekly or Buy Monthly. Thus we should try to make the total equation positive.
Pannet,

If situation permits, please do share the steps when you take the trades. EOD would be fine, based on your convenience.

For the directional bias, do you follow any technical analysis or some thing like Super Trend etc...?

I am also in the same school of not giving much significance to back testing. According to me Live testing wins by a large shot...
 

pannet1

Well-Known Member
#67
Pannet,

If situation permits, please do share the steps when you take the trades. EOD would be fine, based on your convenience.

For the directional bias, do you follow any technical analysis or some thing like Super Trend etc...?

I am also in the same school of not giving much significance to back testing. According to me Live testing wins by a large shot...
All indicators are lagging. Then they talk about divergence. Which is also not 100% confirmed.

Then you have time compression. The more smaller the more lesser your SL level but you have to survive many whipsaws.

The more realistic thing is profit. With a 70K capital if you have Rs 1000 unrealised profit on one side, then i can afford to have a bias. If my bias is wrong then let the market prove by moving against me by make the opposite side move to green. When its moving, i makes sure the unrealised profit is converted into Rs 500 profit or so.

Imagine 9 out 10 times I am wrong and it means I have managed to take 4500 profit and the maximum loss that can happen due to the spread difference is 40 x 100 = Rs. 4000. Then the one time when you are right, you would have covered the lost premium.

Its long time since I saw a ledger that is full of positive figure which obviously has a good physiological impact on one self.

Did you get it. :D
 
Last edited:
#69
All indicators are lagging. Then they talk about divergence. Which is also not 100% confirmed.

Then you have time compression. The more smaller the more lesser your SL level but you have to survive many whipsaws.

The more realistic thing is profit. With a 70K capital if you have Rs 1000 unrealised profit on one side, then i can afford to have a bias. If my bias is wrong then let the market prove by moving against me by make the opposite side move to green. When its moving, i makes sure the unrealised profit is converted into Rs 500 profit or so.

Imagine 9 out 10 times I am wrong and it means I have managed to take 4500 profit and the maximum loss that can happen due to the spread difference is 40 x 100 = Rs. 4000. Then the one time when you are right, you would have covered the lost premium.

Its long time since I saw a ledger that is full of positive figure which obviously has a good physiological impact on one self.

Did you get it. :D
Thanks Pannet. The key take away I feel is you have found something that is working for you and is addressing your specific needs/personality. It must be one of the cherished moments in your trading life/life.

I will be following your journal hence forth and look forward to educating myself.

Thanks for taking the time and more importantly your generosity to share your setups.:clapping:
 

pannet1

Well-Known Member
#70
Thanks Pannet. The key take away I feel is you have found something that is working for you and is addressing your specific needs/personality. It must be one of the cherished moments in your trading life/life.
I am the dumbest of many here. If it works for me it should work for anyone.
I will be following your journal hence forth and look forward to educating myself.
You are welcome
Thanks for taking the time and more importantly your generosity to share your setups.:clapping:
What you see in me now is a collection of many people's knowledge. If I could turn someone's life and make their account green nothing like it.
 

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