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

[amrutham]

Entered into below stock option positions for June expiry.

Sell PNB 80 PE 4000 Qty @ 2.7
Sell TataMotors 270 PE 1500 Qty @ 5.55

Net Credit = 8300+10800 = around 19K

Planning to hold them till expiry and will buy shares If any position closes ITM.

Closed both the positions.

PNB 80 PE 4000 Qty @ 0.6
TataMotors 270 PE 1500 Qty @ 0.6

Net profit = around 16K

 

[amrutham]

Have done a little bit of trading with FINVASIA with small capital.

The experience was really bad and equally SCARY.

Below are the issues till now.

1) If you sell an option, the premium amount is not credited into your account next day. But when you close your option, amount is debited.

For example, If a have one lakh balance and sell one lot of BN contract at 100, ideally my balance should be 104000 next day. But here its one lakh only.

On Day2, let us say, next the option goes against you and the option value increases to 200, then MTM is deducted from your margin and new balnace is 96000.

On Day3, option value goes back to 50, and you square it off. A further 2000 is deducted and the new balance is 94000.

You wait for one more day, the new balance is still 94000, where as it should be 102000.

You call their help desk, and the accounts department says that your actual balance is 94K only. No explanation.

To get further details, you have to wait for your RM. But they are not available during trading hours.

Really very bad experience and will close the account once the issue is resolved.

Got back the missing amount of 24K.

The reason given was, that some files were not uploaded into back office.

Now no more experiments with brokers. Will stick to Fyers and Zerodha.

 

[Subhadip]

Now no more experiments with brokers. Will stick to Fyers and Zerodha.

great......

 

[govindheg]

@amrutham,
Very good thread and nice of you to share your trade details.
Regards

 

[govindheg]

@amrutham,
As regards Banknifty options:
You must have tried positions initiated on Wednesday (a day prior to expiry) or on Thursday itself. What are the results, can you give me some hint?
Also,
What are the times you use CE and PE?
Would appreciate your feedback.
Regards

 

[amrutham]

@amrutham,
As regards Banknifty options:
You must have tried positions initiated on Wednesday (a day prior to expiry) or on Thursday itself. What are the results, can you give me some hint?
Also,
What are the times you use CE and PE?
Would appreciate your feedback.
Regards

Majority of my trades in BN are either long butterflys or naked short strangles.

What I have noticed is, the trades that are initiated on Friday are closed either with minor losses or break-even. Most of the profits came on Tuesdays ,Wednesdays and Thursday. Monday second half is the best time for initiating long butterfly.

As per my experience, for naked short strangles , Tuesday and Wednesday are best days and most of the premium decay happens on these days.

Only the following types of trades initiated on Fridays, resulted in profits.

BN Spot @ 26360

Buy BN 26400 PE 200 Qty @ X
Sell BN 26300 PE 200 Qty @ X
Sell BN 25800 PE 200 Qty @ X

 

[anildnr]

Majority of my trades in BN are either long butterflys or naked short strangles.

What I have noticed is, the trades that are initiated on Friday are closed either with minor losses or break-even. Most of the profits came on Tuesdays ,Wednesdays and Thursday. Monday second half is the best time for initiating long butterfly.

As per my experience, for naked short strangles , Tuesday and Wednesday are best days and most of the premium decay happens on these days.

Only the following types of trades initiated on Fridays, resulted in profits.

BN Spot @ 26360

Buy BN 26400 PE 200 Qty @ X
Sell BN 26300 PE 200 Qty @ X
Sell BN 25800 PE 200 Qty @ X

Just to add to amrutham points...if you see today when bn spot is at 26680...26600ce n 26700pe combined premium is around 320. If the bn is at same levels by eod it eould become around 180 like that..go for short ce n pe and make sure to place sl market orders .we can keep 220 rs slm for both ce n pe in above scenario

 

[amrutham]

Made Below Adjustment.

BN Spot @ 26550

Buy BN 25800 PE 200 Qty @ 17
Sell BN 26200 PE 200 Qty @ 68

Credit = 10K

Net credit = 12K

This position is now safe until BN 26000 on downside.

Now closed this position.

BN Spot @ 26670

Sell BN 26500 PE 200 Qty @ 77
Buy BN 26400 PE 200 Qty @ 51
Buy BN 26200 PE 200 Qty @ 21

Credit = 1K

Net Profit = 13K

 

[amrutham]

Entered into below BN position for 14th June expiry.

BN Spot @ 26700

Buy BN 26600 CE 200 Qty @ 172
Sell BN 26700 CE 200 Qty @ 122
Sell BN 27000 CE 200 Qty @ 30

Net Debit =4K

This position is safe until BN 27080

 

[anildnr]

I feel the butterfly strategies are good when we have good capital as we know the maximum loss well before and also in most of the cases it will be in profit at some point of day..nice amrutham because of you i am analyzing these type of strategies more