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

[superman]

FY 2018- 2019 - Zerodha accounts review.

The overall profit is not in the expected range.

Months of Sept,Oct,Dec and Mar were either small loss/flat months.

Total profit = 12.07 lakhs (5.59 L+ 6.48 L ).

This is on a starting capital of around 50 lakhs and the annual ROI is around 24%.

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You need to go outside zerodha ! They are eating your profits , go for the big brokerage if you dont want to take risk with small ones !

ICICI Direct , Axis , Kotak etc have pre paid brokerage plan or you can negotiate for less.

I am still a small fish so going with small brokers. I wont recommend them to you to store 50 lakh+ as I dont trust them with large amounts.

 

[SarangSood]

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

Hi @superman. I think an option writer needs to always plan for the worst. So protecting the capital is most important, profit is just a byproduct. I said in the above post that majority of my trading (almost 70% of my turnover) is done on expiry days of the current series because of which the black swan event is mostly avoided.

Otherwise my position is always capped for a limited loss when carrying overnight. Since I monitor my position and the volatility in the market very closely, my delta is always neutral. The major work is to decipher what kind of strategy is working in the current scenario and i keep changing my position to match the markets mood.

I also long volatility sometimes (if my indicators say so), and very few times have profited in gap openings but overall haven't really gained much because it is very tough to predict it (atleast for me).

 

[cloudTrader]

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.

Covered Call is fantastic but I was referring to a variation of spread in place of range bound strategy , I always tend to resort to Bull or Bear spreads which are quite easy to handle when mkt is in momentum , but yes profit potential is capped , although quite handsome when strikes are chosen carefully.

 

[superman]

Hi @superman. I think an option writer needs to always plan for the worst. So protecting the capital is most important, profit is just a byproduct. I said in the above post that majority of my trading (almost 70% of my turnover) is done on expiry days of the current series because of which the black swan event is mostly avoided.

Otherwise my position is always capped for a limited loss when carrying overnight. Since I monitor my position and the volatility in the market very closely, my delta is always neutral. The major work is to decipher what kind of strategy is working in the current scenario and i keep changing my position to match the markets mood.

I also long volatility sometimes (if my indicators say so), and very few times have profited in gap openings but overall haven't really gained much because it is very tough to predict it (atleast for me).

Thanks for sharing your insights ,

Many are trying expiry trading but I get shit scared as its like T20 instead of test tournament. How you control the sudden gamma risk due to some major event in India and the exchange is not working at all to clear off your positions ? With the leverage you have , 800 lots of NIFTY/BANKNIFTY is enough to cause massive damage if you are not able to clear off positions

 

[SarangSood]

Thanks for sharing your insights ,

Many are trying expiry trading but I get shit scared as its like T20 instead of test tournament. How you control the sudden gamma risk due to some major event in India and the exchange is not working at all to clear off your positions ? With the leverage you have , 800 lots of NIFTY/BANKNIFTY is enough to cause massive damage if you are not able to clear off positions

The key to trade on expiry day is to have high speed to shift positions for maintaining delta and a good broker so that the terminal never shuts. Many traders specially institutional have their business model specially designed only for expiry day. That is primarily because there is clarity about the end that all the premiums will be 0.

Now the question arises is where the index will end up. There are specific strategies which help us play volatility while receiving premiums. Basically the positions are capped for big movements and can give good return if the index moves under 200-300 points. I have also divided the day into 2 parts that is one before 2pm and one after that because i need extra protection for the last hours move. So a 500 point move at the end when the exchange also freezes can actually give me a good profit.

It takes good amount of experience for executing all these methods and i personally am always learning because market is always evolving and it never ceases to amaze.

 

[anildnr]

March is kind of almost directional move for banknifty and whatever the call we have taken..it is in profit. So this month I did like...400 quantity deep itm call buy+ 200 quantity atm call sell+ 200 itm put buy. Adjustments accordingly. Ofcourse it will give loss if bn falls suddenly. But we can do adjustments to minimise the loss.

 

[amrutham]

March is kind of almost directional move for banknifty and whatever the call we have taken..it is in profit. So this month I did like...400 quantity deep itm call buy+ 200 quantity atm call sell+ 200 itm put buy. Adjustments accordingly. Ofcourse it will give loss if bn falls suddenly. But we can do adjustments to minimise the loss.

Its going very strong. There is no sign of big fall atleast till this expiry.Good luck .

 

[govindheg]

Happy Ugadi to all. Let new year bring cheers to all of us.

 

[columbus]

Funny movement.
Look at the Prices of 30300CE and 30600CE.
Generally 30600CE should be cheaper than 30300CE.(30200>30300>30400>30500>30600). On contrary 30300ce is cheaper than 30600CE. Any explanation please.

Instrument..........................................net change.... Price

 

[kingkrunal]

Funny movement.
Look at the Prices of 30300CE and 30600CE.
Generally 30600CE should be cheaper than 30300CE.(30200>30300>30400>30500>30600). On contrary 30300ce is cheaper than 30600CE. Any explanation please.

Instrument..........................................net change.... Price

simple... no buyer seller or any last trade .. liquidity issue :?