My trading Diary - 10k to 1Lakh – Time ASAP

[vishnux]

My advice is to never carry your option next day if you are buying , theta will increase your loss.

Exceptional or during result, that too close as soon as possible , because after result there will be IV crash.

 

[moneymanager1980]

psychology/ positive thoughts/ confident / good habits are all very important for a trader.. why have this id ? change it ..

 

[The Pig]

psychology/ positive thoughts/ confident / good habits are all very important for a trader.. why have this id ? change it ..

I started this thread to cultivate those habits,I feel I am confident on my trades,so much confident that I hold loss making positions without selling them and end up in more losses..!!!!! But I am indisciplined, I trade impulsively once in a while,almost once a week which needless to say ends up in losses.
I used this id to remind myself on how I am trading, but yes,I will try changing the id once I start trading with discipline.

 

[kingsmasher1]

This weeks trades:
Monday- Had carried profitable Infy820CE(21k) without booking profits thinking it will rise after results. It has gone down. Averaged it everyday..!!! Not booked losses yet.
Over the week, kept buying and selling Infy750PE, which I had bought for purpose of hedging 820CE.

I always avoid buying options before a result. People generally do it thinking it might rise if results are +ve, but mostly if there is a good news it is always factored in (insider news/traders). So, a +ve news mostly wont make it rise much further.

The strategy which works mostly i have seen is taking advantage of IV crush on day of result:
- Check the IV percentile, mostly it will be high
- Sell both calls and puts maintaining a delta neutral position (a day or 2 before results depending on IVP)
- Wait for the result to get declared and take advantage of IV crush
- Square off the same day, and avoid carrying forward the position.

 

[The Pig]

I always avoid buying options before a result. People generally do it thinking it might rise if results are +ve, but mostly if there is a good news it is always factored in (insider news/traders). So, a +ve news mostly wont make it rise much further.

The strategy which works mostly i have seen is taking advantage of IV crush on day of result:
- Check the IV percentile, mostly it will be high
- Sell both calls and puts maintaining a delta neutral position (a day or 2 before results depending on IVP)
- Wait for the result to get declared and take advantage of IV crush
- Square off the same day, and avoid carrying forward the position.

I had stopped buying options before results. But Infy was an exception because I read the chart,it was moving sideways from few days without much volume,so I decided that it might rise after results. I studied the earnings reports (not in depth) of few previous quarters and checked earnings reports of TCS and how it compares with Infy.
I read the earnings report on Friday and thought results are good, so didn’t book losses on Monday. I still think earnings are good and it will rise ( this is the habit I am trying to overcome, that accepting a probable mistake and book losses) so I am holding it.
I am happy to get corrected if my analysis on Infy is wrong.