Regular Post and update of NIFTY Option Trading

#1
In this post I will be posting my trades on NIFTY option trading.
May be I will get support & mentorship from senior and learned members of this platform to improve my trades further.
 
#2
My First trade and my learning.
#Trade1 (19-Nov-20 to 11-Dec-20)
Before Trading Thoughts: I will keep strike price very wide and this won't be breached and I will walk away with premium at expiry.
During Trading Thoughts: Rolled up put and booked some profit.
Post Trading Thoughts: Hedge was not deployed and it was a big mistake.
(Loss of 9203 INR or -1.84% of Capital)

Trade_1.jpg
 
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#3
#Trade2 (10-Dec-20)
Before Trading Thoughts: Same strategy as Tarde1, No hedge was in mind , but shifting far expiry to Near expiry.
This was implemented during 1st Trade time duration only.
During Trading Thoughts: Trade couldn't be executed ,low margin money available. Margin was exhausted by Trade 1.
Post Trading Thoughts: Lost brokerage, closed position and learned to check margin before any trade attempt.
(Loss of 132 INR or -0.03% of Capital)
Trade_2.jpg
 
#4
#Trade3 (11-Dec-20 to 15-Dec-20)
Before Trading Thoughts
: First hedged strategy attempted.
During Trading Thoughts: Full trade couldn't be executed ,low margin money available. Margin was exhausted by 1st leg.
Post Trading Thoughts: Booked profit on deployed leg of strategy, before 2 days to expiry. Theta decay happened to max on 1 leg.
(Profit of 1,298 INR or +0.26% of Capital)
Trade_3.jpg
 
#5
#Trade4 (15-Dec-20 to 21-Dec-20)
Before Trading Thoughts: 4-Legged Weekly Strategy. Hedged in calendar for same strike price.
During Trading Thoughts: NIFTY Moved up and shifted PE by 200 points(16-Dec-20)
3 Days before expiry i.e on Monday morning Strategy was giving 3.5 K profit, thought of collecting 1 more day theta decay.
On 21-Dec-20 market gave sudden very violent move (chart attached below). I was watching it but couldn't figure out what to do.
Panic along with it ,brokers page was taking long long to load(may be due to high load) which made me nervous.
I finally squareoff all position as soon as i got access to broker portal.
Post Trading Thoughts: From 3.5 K profit in Morning to Loss of 4K by the time of square off.
Few thoughts , greed of collecting theta decay for 1 more day caused me this.
There were ways to tackle , adding extra put or squaringoff 1 lot of short put.
I was lacking plan, what to do in case market moves up & down beyond my comfort zone(Support & resistance).
(Loss of 4069 INR or -0.83% of Capital)
Trade_4.JPG
21-Dec-20_Violent move.JPG
 
#6
#Trade5 (22-Dec-20 to ---------)
Before Trading Thoughts
: 4-Legged directionless Monthly Strategy for 28-Jan Expiry. Hedge also considered for Jan expiry. Feb option chain was not liquid. Aim to to gain theta decay.
During Trading Thoughts: Trade Started with Range of 14300CE & 12100PE and hedged with 14000CE & 12500PE.
23-Dec-20 - NIFTY gained +100 points leaving almost 50% premium on put side. Collected the premium & rolled up to 12500PE & hedged with 12900PE.
24-Dec-20 - NIFTY gained +130 points causing almost 0.50% loss on CE side, so I rolled up to 14600CE & hedged with 14300CE.
28-Dec-20 - Market opened after 3 days , with gap up of +84 point, got good theta decay in premiums.
No change/update in strategy .If market takes small pause or draw down i will get very good premium erosion.
If not i will roll up by PE side as premiums have already eroded by 40%.
Post Trading Thoughts: Still in Trade......
I am novice, and learning Option strategies. My thoughts should not influence anyone to trade like wise.
I am posting trades, to learn, track my progress and get guidance from learned members of this forum.

Trade_5 Monthly.JPG

Market View- 28-Dec-20

28-Dec-20_Market View.JPG
 
#7
#Trade5 (22-Dec-20 to ---------)
Before Trading Thoughts
: 4-Legged directionless Monthly Strategy for 28-Jan Expiry. Hedge also considered for Jan expiry. Feb option chain was not liquid. Aim to to gain theta decay.
During Trading Thoughts: Trade Started with Range of 14300CE & 12100PE and hedged with 14000CE & 12500PE.
23-Dec-20 - NIFTY gained +100 points leaving almost 50% premium on put side. Collected the premium & rolled up to 12500PE & hedged with 12900PE.
24-Dec-20 - NIFTY gained +130 points causing almost 0.50% loss on CE side, so I rolled up to 14600CE & hedged with 14300CE.
28-Dec-20 - Market opened after 3 days , with gap up of +84 point, got good theta decay in premiums.
No change/update in strategy .If market takes small pause or draw down i will get very good premium erosion.
If not i will roll up by PE side as premiums have already eroded by 40%.
View attachment 45160
Market View- 28-Dec-20

View attachment 45161 [/QUOTE]

29-Dec-20 - NIFTY opened gap up of 35 Points(13915), my put side premiums have eroded by 50%.
Market seems bullish , also volatility has increased, may be due to year end.
At same level premiums have increased causing me loss on call side.
I have booked profit on put side and shifted by put side to 12900 and hedged by 13300.

1609301693793.png


Now my strategy looks like this, at extreme ends i will have +6% profit if market rallies or drawdown to these point near to expiry.

1609302086521.png


Post Trading Thoughts: Still in Trade......
I am novice, and learning Option strategies. My thoughts should not influence anyone to trade like wise.
I am posting trades, to learn, track my progress and get guidance from learned members of this forum.
 
#8
#Trade5 (22-Dec-20 to ---------) Update3
Before Trading Thoughts
: 4-Legged directionless Monthly Strategy for 28-Jan Expiry. Hedge also considered for Jan expiry. Feb option chain was not liquid. Aim to to gain theta decay.
During Trading Thoughts: Trade Started with Range of 14300CE & 12100PE and hedged with 14000CE & 12500PE.
23-Dec-20 - NIFTY gained +100 points leaving almost 50% premium on put side. Collected the premium & rolled up to 12500PE & hedged with 12900PE.
24-Dec-20 - NIFTY gained +130 points causing almost 0.50% loss on CE side, so I rolled up to 14600CE & hedged with 14300CE.
28-Dec-20 - Market opened after 3 days , with gap up of +84 point, got good theta decay in premiums.
No change/update in strategy .If market takes small pause or draw down i will get very good premium erosion.
If not i will roll up by PE side as premiums have already eroded by 40%.
29-Dec-20 - NIFTY opened gap up of 35 Points(13915), my put side premiums have eroded by 50%.
Market seems bullish , also volatility has increased, may be due to year end.
At same level premiums have increased causing me loss on call side.
I have booked profit on put side and shifted by put side to 12900 and hedged by 13300.
04-Dec-20 - My put side premiums have eroded by 50%.
I have booked profit on put side and shifted by put side to 13300 and hedged by 13600.
05-Dec-20 - Market are drawdown below support level of 14065.
I bought additional put of 13600 in case market heads low.
pressure was also due to DOW Jones closing lower. later market recovered and sustained for longer duration. I Closed the put position.
06-Dec-20 - Market crossed 14200 mark and , support from put side made me close 1 Call option of 14600 CE.
Call side was under immense pressure due to market heading high.
This trade took long and initial call side caused major draw down.
My aim is to close this strategy in minor profit or cost to cost.
If market remains sideways in can close it with minor profit.

1610024421478.png


Now my strategy looks like this, at extreme ends.

1610025141412.png



Post Trading Thoughts: Still in Trade......
I am novice, and learning Option strategies. My thoughts should not influence anyone to trade like wise.
I am posting trades, to learn, track my progress and get guidance from learned members of this forum.[/QUOTE]
 

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