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Today was a testing day for option sellers & robustness of their systems.

Glad to have done reasonably good & ended in green😊

How did I end up in green via option selling inspite of the crazy fall and spike on put side premium ?

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#trading #data
At around 12 pm, I had 22200 straddle and was in a profit of 35
points per lot.

But around 1:30 pm markets fell sharply and I had an otm buy stop on 21700 PE at 145 (I keep these orders in the system to protect mtm if there’s a big directional movement)

The protective order got executed at 145 and BNF also broke 22000 (crucial support)

I sold additional calls of 22000 at around 220 with a SL as system had turned bearish.

BankNifty kept on falling and additionalsold CE of 22000 was in profit so I pyramided into my position and sold more calls of 21900 CE.

Key in option selling is to be with the trend and pyramid when right.
I was in good profit by 2:45 pm and covered my additional sold around 2:45 pm and also the bought 21700 PE at 140(protection) was squared off at 430.. Giving almost 300 points.

Squared off with a profit of +2.5 L at around 3.10 pm.

Takeaways :

1) Don’t blindly sell any option but be with the trend.
2) Always manage risk while selling option( protective stop gave me 300 points)

Hope you learnt something on how to manage an option trade:)

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