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

[amrutham]

Fyers account review

I have started trading in my Fyers account in last May with 3.2 lakhs initial capital.

The main purpose of this account is to be a backup account as and when I encounter issues with Zerodha. It has served this purpose very well and saved me many times.

But returns wise, its flat for the whole year and the current capital is also around 3.2 lakhs.

The strategies traded in this account are mainly naked strangles with NF and BN options.

 

[tradersahab]

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.

View attachment 34642 View attachment 34643

sir, is it possible to trade ratio spreads on intraday basis. I just don't have that much margin for taking positions home.

Kindly assist.

 

[amrutham]

sir, is it possible to trade ratio spreads on intraday basis. I just don't have that much margin for taking positions home.

Kindly assist.

Yes, you can trade it intraday. But do not attempt it on days when voltality is very high.

 

[govindheg]

Month of April was ok for me as well. Could not add much but overall positive after the charges.
Owing to margin issues, have traded under MIS only.

 

[tradersahab]

Month of April was ok for me as well. Could not add much but overall positive after the charges.
Owing to margin issues, have traded under MIS only.

what strategies do you follow in intraday ? I am also completely an intraday writer

 

[mmca2006]

Hi Everyone,

I am following this forum for last 4 years and this is my first post.

I was a software engineer by profession and worked in the filed for 12 years. Finally I quit my job in Jan 2017 and started full time trading.
...............................................................

Its mostly Nifty current month options and BN weekly options and occasionally stock options.

To be continued..

I have gone through you thread and value your opinion, so just want your view about the drawbacks of the following strategy if any, I am not comfortable with unlimited loss diagram ,so I want to hedge 400 +/- short strangle of MONTHLY option hedged with weekly option every week , is it feasible ? for e.g now nifty is 11724 , will short 11400 pe and 12000 ce of 30 May19 and want to hedge it with 11400 pe and 12000ce of 9/5/16 , will take profit / loss as on 09/5/19 weekly expiry and will again create position of +-300 from nifty hedging with CE / PE of 16/5/19.

 

[SarangSood]

I have gone through you thread and value your opinion, so just want your view about the drawbacks of the following strategy if any, I am not comfortable with unlimited loss diagram ,so I want to hedge 400 +/- short strangle of MONTHLY option hedged with weekly option every week , is it feasible ? for e.g now nifty is 11724 , will short 11400 pe and 12000 ce of 30 May19 and want to hedge it with 11400 pe and 12000ce of 9/5/16 , will take profit / loss as on 09/5/19 weekly expiry and will again create position of +-300 from nifty hedging with CE / PE of 16/5/19.

The problem with this strategy is that the premium being paid for weekly strangle*3 is higher than monthly. And so is the premium decay faster in weekly. So you will lose more when there is non-volatility. Only in extreme volatile conditions when one of your option becomes ITM can the weekly become more active than monthly.

 

[mmca2006]

The problem with this strategy is that the premium being paid for weekly strangle*3 is higher than monthly. And so is the premium decay faster in weekly. So you will lose more when there is non-volatility. Only in extreme volatile conditions when one of your option becomes ITM can the weekly become more active than monthly.

Thanks for your reply ,however my position is like following-
short 11400 PE -30/5/19--176
short 12000 CE -30/05/19--191
long 11400 PE --09/05/19--2.50
long 12000 CE---09/05/19--2.2
the weekly options is just not so priced. Every Friday position to be taken +-400 of nifty value and every week the price of OTM option will remain more or less same as current weekly OTM PE /CE .So in that case how cost of 3 ( excluding last week) weekly OTM PE/CE can be more monthly option value ? Am i missing some thing.

 

[SarangSood]

Thanks for your reply ,however my position is like following-
short 11400 PE -30/5/19--176
short 12000 CE -30/05/19--191
long 11400 PE --09/05/19--2.50
long 12000 CE---09/05/19--2.2
the weekly options is just not so priced. Every Friday position to be taken +-400 of nifty value and every week the price of OTM option will remain more or less same as current weekly OTM PE /CE .So in that case how cost of 3 ( excluding last week) weekly OTM PE/CE can be more monthly option value ? Am i missing some thing.

11400PE+12000Ce - 09/5/19 -- 5
11400PE+12000Ce - 16/5/19 -- 30
11400PE+12000Ce - 23/5/19 -- 271

Your short position:
11400PE+12000Ce - 30/5/19 -- 367

Because of the election results in between you can see a big difference now in your position. But if you add all the weekly's you can see there is not much left. Also you will not be having any hedge after 23/5/19 so you will have to exit or continue without.

 

[mmca2006]

11400PE+12000Ce - 09/5/19 -- 5
11400PE+12000Ce - 16/5/19 -- 30
11400PE+12000Ce - 23/5/19 -- 271

Your short position:
11400PE+12000Ce - 30/5/19 -- 367

Because of the election results in between you can see a big difference now in your position. But if you add all the weekly's you can see there is not much left. Also you will not be having any hedge after 23/5/19 so you will have to exit or continue without.

Thanks for your reply ,As on today 11400PE+12000Ce - 16/5/19 -- 30 , on 09/5/19 expiry it will come down to 10-15, it is true that both 30/5 and 23/5 prices are inflated because of election , however back testing since 14/02/19 may provide good insight of this strategy.