My Trading Journal

[rege79]

This is my trading log where I will be keeping track of my options positions.
All values are adjusted for brokerage. Some of the positions below have been taken few weeks back.

Nifty Value = 3693

May Contracts
Short 3800 Nifty Call, 5 lots @ Avg 71 = 17221
Short 4000 Nifty Call, 2 lots @ Avg 58.6 = 5648
Short 3200 Nifty Put, 2 lots @ Avg 47.5 = 4537
Short 3000 Nifty Put, 1 lot @ Avg 20 = 895


Total Premium Earned = 28301
Premium Value Today = 24661
Unrealized P&L = 3640
Realized P&L = 0
P&L LTD = -595193
P&L YTD = -12314

 

[rege79]

Nifty=3671(+78)
No change in positions.

Total Premium Earned = 28301
Premium Value Today = 35257
Unrealized P&L = -6956
Realized P&L May = 0
P&L LTD = -595193
P&L YTD = -12314

Election results key to Monday's movement, big up/down move expected. Need to be careful as my bias is short.

 

[AW10]

How do you manage your risk ? You seem to be a risk lover as you are holding naked short options around such critical event. Or you have very big account size that can easily absorb the loss.

If mkt goes down, u have limited reward but if it goes up, then risk is unlimited.

Happy Trading

 

[rege79]

Hey thanks for looking at my thread.
Well, the net position delta is -113 today and Theta is a huge 2200.
Also, I have some long positions in some nifty stocks, so all those calls are not exactly naked
I suffered huge hit in Jan and Oct 2008 while trading futures, Until I discovered the beauty of writing options, backed by long stock positions.

 

[aravinthrajm]

Hi rege,

I think the puts what you have written must be still more closer and the lot sizes must be increased proportinately. While you are on the writing side we have to be even more careful.

You can join in my thread where I have planned to post options strategies for our users.

 

[rege79]

hi aravinthrajm,
I believe writing puts is more risky than writing calls at this level. Especially since the markets are up almost 50% since march. Hence I have written far out of money puts.
I may be wrong with my judgement, we will know soon.
Thanks for sharing your ideas.

 

[rege79]

With UPA winning with clear majority, I think my positions are in soup. Will be looking to close the 3800 calls and write some 3600 may puts on monday.

 

[rege79]

18th May will be a day to remember. Lots of lessons learnt. I am staring at a loss of 120k in my options positons. Though long stock holdings have gone up.

Lessons Learnt: I will read this post every time I trade.
1) Before any critical event (Elections, Budget etc) never write options no matter how far out of the money they are.
2) Theta, Gamma, Delta and other theories go out of the window on days like this.
3) Never try predict the future.
4) Never try to beat the markets. You can beat it once,twice,thrice..but over the long haul you will get beaten.

 

[rege79]

Nifty=4323(+651)
No change in positions. In 40 seconds of trading there was no way I could close my positions.

Total Premium Earned = 28301
Premium Value Today = 152307
Unrealized P&L = -124006
Realized P&L May = 0
P&L LTD = -595193
P&L YTD = -12314

 

[riser3]

hope u r some how spared from this abrupt euphoria