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

[columbus]

Yes it makes a lot of difference particularly for option writers as even with same number of quantity it would always be easier in bnf to adjust your position because with less lot size comes freedom to adjust them in variety of different ways.

One more thing that is better in bnf is that although difference in strikes is 50 in Nifty, the liquidity in them is very low (atleast for a majority of time). So we have bnf (26k) and Nifty (11k) having practically the same strike difference of 100. That means we have more strikes to trade in bnf.

The liquidity in MONTHLY NIFTY Options is as bad as Tortoise speed.But liquidity in Nifty weekly options is comparable to weekly bank nifty options. I am talking about NAKED options only.

Yes , I agree with you, it makes a lot of difference in case of option writers

 

[amrutham]

JAN 2019 - Zerodha accounts review.

Only options trading was done in these accounts. Predominantly with NF monthly and BN weekly options with my regular strategies.

The month went quite well without much volatility.

Total gross profit is 3.28 lakhs and net is 2.7 lakhs.

Feb 2019 - Zerodha accounts review.

It was an okay sort of month with volatility increasing towards the end.

Total gross profit is 1.94 lakhs and net is 1.48 lakhs.

 

[SarangSood]

Feb 2019 - Zerodha accounts review.

It was an okay sort of month with volatility increasing towards the end.

Total gross profit is 1.94 lakhs and net is 1.48 lakhs.

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Funny, my performance is very very similar to yours. The difference is that ratio wise my January profit was more and February was equally less. Maybe because i only trade in BNF weekly which in non-volatility (January) can be very rewarding and vice versa. February was personally a good learning experience and i was on course to repeat january till last week where i got a little carried away.

Good to see like minded traders performing well on this platform. Cheers

 

[amrutham]

Funny, my performance is very very similar to yours. The difference is that ratio wise my January profit was more and February was equally less. Maybe because i only trade in BNF weekly which in non-volatility (January) can be very rewarding and vice versa. February was personally a good learning experience and i was on course to repeat january till last week where i got a little carried away.

Good to see like minded traders performing well on this platform. Cheers

In my case, almost all profits in Feb were from NF and BNF weekly options. Lets see how it goes in March.

 

[superman]

Feb 2019 - Zerodha accounts review.

It was an okay sort of month with volatility increasing towards the end.

Total gross profit is 1.94 lakhs and net is 1.48 lakhs.

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Nice going, Do you take unlimited risk overnight trades to achieve this ? Can you please let us know by rough estimate how many are such type of trades and how many are limited risk like calendar spread ,iron condor etc

 

[amrutham]

Nice going, Do you take unlimited risk overnight trades to achieve this ? Can you please let us know by rough estimate how many are such type of trades and how many are limited risk like calendar spread ,iron condor etc

My positions are a combination of naked short strangles,ratio spreads and butterflys.

Ratio spreads are typically initiated on either Thursday or Friday for the weekly expiry.Butterfly positions are initiated either on Monday or Tuesday.

Naked positions are short strangles on BN weekly options with very limited quantity. These are generally initiated on Monday. This is to avoid weekend tensions and time decay is typically high in last three days of expiry.


For now in a Zerodha account, the naked position size for BN weekly options is limited to 100 Qty on each side and the strike is typically 200-300 points away from the current market price. These positions are actively adjusted as per the market movement.


Apart from these, at every month beginning, I take a short strangle on NF monthly options. For the current month the position is 300 Qty NF short on both 10500 PE and 11200 CE for March expiry. This position is also adjusted if there is a risk of NF going outside 10500 - 11200 range.

Generally my loss days are when VIX increases and the prices of both CE and PE increases or when there is a huge gap up or down.

 

[superman]

My positions are a combination of naked short strangles,ratio spreads and butterflys.

Ratio spreads are typically initiated on either Thursday or Friday for the weekly expiry.Butterfly positions are initiated either on Monday or Tuesday.

Naked positions are short strangles on BN weekly options with very limited quantity. These are generally initiated on Monday. This is to avoid weekend tensions and time decay is typically high in last three days of expiry.


For now in a Zerodha account, the naked position size for BN weekly options is limited to 100 Qty on each side and the strike is typically 200-300 points away from the current market price. These positions are actively adjusted as per the market movement.


Apart from these, at every month beginning, I take a short strangle on NF monthly options. For the current month the position is 300 Qty NF short on both 10500 PE and 11200 CE for March expiry. This position is also adjusted if there is a risk of NF going outside 10500 - 11200 range.

Generally my loss days are when VIX increases and the prices of both CE and PE increases or when there is a huge gap up or down.

Thanks for the detailed explanation.
I am also trying strangles for monthly nifty. Time decay is very slow for first 15 days but I face little risk due to gamma explosion.

I really get scared shorting weekly options; It changes so often that its not easy to manage and I need to be present in front of terminal entire day.

 

[siddhant4u]

Thanks for the detailed explanation.
I am also trying strangles for monthly nifty. Time decay is very slow for first 15 days but I face little risk due to gamma explosion.

I really get scared shorting weekly options; It changes so often that its not easy to manage and I need to be present in front of terminal entire day.

Superman, do you mean to say kryptonite radiation

 

[soft_trader]

Superman, do you mean to say kryptonite radiation

Gamma Ray Bursts

 

[amrutham]

Feb 2019 - Zerodha accounts review.

It was an okay sort of month with volatility increasing towards the end.

Total gross profit is 1.94 lakhs and net is 1.48 lakhs.

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.