Trading for Living -- Successfully Completed one year as Full Time Trader

kingsmasher1

Well-Known Member
Mar 2019 - Zerodha accounts review.

Owing to one way movement of NF and BN, I had to make multiple adjustments to my shorted calls.
Finally it was a flat month with no profit and no loss.
No worries you would do better going ahead but according to me strategies like ratio-spread, butterfly or iron-condor are the best when markets are in a range-bound. (You are expecting it to be in certain range within expiry where your shorted options are out-of-money.) Like as it happened from March 2018-March 2019.

Nifty broke the range on 11th March, and kept trending upwards. It would be plain foolish to go with range-bound strategies during this trending period and keep on making adjustments blocking a huge sum of money as margin. The best would be to have some sort of covered call with futures. Like go long on futures, and buy an out-of-money PUT kind of thing for downward protection. Or if really one is determined to short, the best would be to short a OOM puts rather than call, with some hedging as the market is trending up..but a BIG NO to shorting calls in an uptrending market (even if it is OOM).
 
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amrutham

Well-Known Member
No worries you would do better going ahead but according to me strategies like ratio-spread, butterfly or iron-condor are the best when markets are in a range-bound. (You are expecting it to be in certain range within expiry where your shorted options are out-of-money.) Like as it happened from March 2018-March 2019.

Nifty broke the range on 11th March, and kept trending upwards. It would be plain foolish to go with range-bound strategies during this trending period and keep on making adjustments blocking a huge sum of money as margin. The best would be to have some sort of covered call with futures. Like go long on futures, and buy an out-of-money PUT kind of thing for downward protection. Or if really one is determined to short, the best would be to short a OOM puts rather than call, with some hedging as the market is trending up..but a BIG NO to shorting calls in an uptrending market (even if it is OOM).
You are right. My range bound strategies do not work in a trending market.

For the month of April, I will try some new strategies.
 

SarangSood

Well-Known Member
Mar 2019 - Zerodha accounts review.

It was one of the most difficult months.

Owing to one way movement of NF and BN, I had to make multiple adjustments to my shorted calls.

Finally it was a flat month with no profit and no loss.

View attachment 34240 View attachment 34241
March was indeed very difficult as the cost of shifting was a lot. I had to be very selective in my trading decisions and majority of my turnover and profits came in bnf on expiry days particularly 21st & 28th March, which made it possible to keep me just positive.

The strategy employed on expiry days mostly was Cal and Put credit spreads of the current week together in equal quantities where ITM was bought and delta neutral ATM sold. It was still very tricky and the adjustment needed was a lot.

On 1.5cr capital, the profit earned is just 1.2 lakhs for the month of march after giving almost equal amount of brokerage.
 

amrutham

Well-Known Member
March was indeed very difficult as the cost of shifting was a lot. I had to be very selective in my trading decisions and majority of my turnover and profits came in bnf on expiry days particularly 21st & 28th March, which made it possible to keep me just positive.

The strategy employed on expiry days mostly was Cal and Put credit spreads of the current week together in equal quantities where ITM was bought and delta neutral ATM sold. It was still very tricky and the adjustment needed was a lot.

On 1.5cr capital, the profit earned is just 1.2 lakhs for the month of march after giving almost equal amount of brokerage.
Wow. 1.5 cr capital. On an average how much you make in a month?
 

SarangSood

Well-Known Member
Wow. 1.5 cr capital. On an average how much you make in a month?
Average would be around 4-5 lakhs in last 3 yrs (average really doesn't reflect the ups and downs though). My broker allows me to take around 800 lots one side intraday so that should be discounted if calculating ROI. That's why majority of my work is done on expiry day and so is the cost so high because of shifting this number of lots.
 

kingsmasher1

Well-Known Member
For trending markets , best are bull or bear spreads as per the direction of the market.
Unfortunately suffers from limited (capped) profit potential unlike covered call. I believe spreads are to be employed where you are moderately bullish/bearish which isn't in this case. Correct me if i am wrong.
 
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superman

Well-Known Member
Average would be around 4-5 lakhs in last 3 yrs (average really doesn't reflect the ups and downs though). My broker allows me to take around 800 lots one side intraday so that should be discounted if calculating ROI. That's why majority of my work is done on expiry day and so is the cost so high because of shifting this number of lots.
Awesome ! But are you well protected against black swan event ? I have a gut feeling 2008 like situation will happen within next 2-3 years ! Its gonna eat 1-2 years of option selling profits if we are protected ; If not there is a chance of complete wipe out
 

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