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

[tanmayagrawal]

Same with bank nifty. When bank nifty started falling, at around 29900 levels I sold 30100 calls.

As a result exited at breakeven

 

[superman]

April is a smooth expiry. Market was in 1SD range and VIX was sweet !
So option sellers must have made killer this month. May is NO trade month for me ,, Its gonna be too risky . 1SD Range is now -7% to +7% , Selling options at this wide range also gives you so much money but there are too many news events in May. It can overshoot this range easily in 1 day itself

 

[tanmayagrawal]

April is a smooth expiry. Market was in 1SD range and VIX was sweet !
So option sellers must have made killer this month. May is NO trade month for me ,, Its gonna be too risky . 1SD Range is now -7% to +7% , Selling options at this wide range also gives you so much money but there are too many news events in May. It can overshoot this range easily in 1 day itself

Not sure if I would agree with you. I work in an options firm and they are having dull couple of months. Reason for this is though IV is high, it doesn't fall with a trend but with a lot of bounces due to which SL are regularly hit. Also, IV is coming with also increase in prices these days which has made options selling tougher.

 

[abhay.fintech]

deleted....

 

[SarangSood]

Not sure if I would agree with you. I work in an options firm and they are having dull couple of months. Reason for this is though IV is high, it doesn't fall with a trend but with a lot of bounces due to which SL are regularly hit. Also, IV is coming with also increase in prices these days which has made options selling tougher.

The first week of April was indeed very smooth for writing for both bnf & nf weekly. 70% of my April profit came from that week alone. I'm not sure i can say the same for the rest of the month. One had to really apply their writing skills to come out positive. Mostly the IVs used to open low from the previous days volatility, followed by the whole days erratic and sudden movements. If one doesn't shift their position, maybe good profit could have been made but then if the trend continues it could lead to big loss as well.

 

[tanmayagrawal]

The first week of April was indeed very smooth for writing for both bnf & nf weekly. 70% of my April profit came from that week alone. I'm not sure i can say the same for the rest of the month. One had to really apply their writing skills to come out positive. Mostly the IVs used to open low from the previous days volatility, followed by the whole days erratic and sudden movements. If one doesn't shift their position, maybe good profit could have been made but then if the trend continues it could lead to big loss as well.

I agree to this. Because of elections these days, IV falls later in the day (from 3 to 3:30). Anyone having patience who can wait till end of the day would be making serious money.

 

[amrutham]

In my case, even though April is very challenging, but its better than March. Traded with my regular strategies and the number of adjustments required are less than last month.

Overall its a satisfactory month unless the last day of the month(Tuesday) spoils the party.

I think the volatility will continue till election results and its better to be on lighter side with naked shorts.

 

[SarangSood]

In my case, even though April is very challenging, but its better than March. Traded with my regular strategies and the number of adjustments required are less than last month.

Overall its a satisfactory month unless the last day of the month(Tuesday) spoils the party.

I think the volatility will continue till election results and its better to be on lighter side with naked shorts.

Friday was pretty good as the premiums fell a lot in the last hour. I booked half of my strangle as the profit per lot was satisfactory and hedged the remaining. Tuesday should probably be not that crazy (atleast for the morning session).

The great thing this time about the elections is that we have weekly expiries with two very liquid instruments. So the high premiums have to give in sometime and even if they fall violently (with a big move as they do these days) we can adjust our strategies accordingly. It just tests us as writers how well we read the market. Good thing about option strategies is that we can play volatility either ways. Last elections i was trading in VIX futures and it turned out to be great 2 months.

 

[SarangSood]

I agree to this. Because of elections these days, IV falls later in the day (from 3 to 3:30). Anyone having patience who can wait till end of the day would be making serious money.

Yes such senario is quite common these days. Basically the premiums fall very quickly in a short violent index move. And the rest of the time is filled with hollow noise of index movements that only adds up to the cost of adjustment. That's why the week i told above was so good because premiums were falling consistently with reasonable delta movement.

 

[amrutham]

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.

Apr 2019 - Zerodha accounts review.

Total capital at the start of new Financial Year FY 19-20 is around 60 lakhs.

April was a reasonably good month with my regular strategies with ratio spread being the most profitable one.
Total gross profit for the month is 2.62 lakhs and net profit is around 1.95 lakhs.

Percentage wise, its 4.2% gross profit and 3.2% net profit for the month.