Thread :

How I managed my today’s option selling trade inspite of spike on the call side

Overnight position :
I had carried overnight 23000 PE ( sell at 155) & 24200 CE (sell at 135)

In the morning I booked profit in 23000 PE and shifted to 23200 at 120

(1) ImageImage
24000 was a resistance for BNF and above that good spike was expected. So I kept SL in 24200 CE at 200 (as per system)

The SL in 24200 got hit at 200 around 10:30 am and I shifted to next resistance level 25000 CE at 63

Open now(Sell) :
23200 PE at 120
25000 CE at 63

(2) Image
Calls were rising rapidly so I sold additional 23200 PE and also bought 25000 CE (10th sept expiry at 200)

The 25000 CE bought in next week was managing the deltas and MTM.

(3) Image
Market pullbacked so Calls cooled of a bit and I booked profit in 25000 CE (10th sept expiry ) at 267

And put a buy stop in 25500 CE(3rd sept expiry at 65)

(4) Image
Market kept on rising and I kept rolling up my puts and also sold additional puts below 24K as 24 K was a strong support

(5) Image
So inspite of today being a trending day ended up in decent profit of around 1 L by active trade management and cutting losses quickly.

Learnings :
1) Don’t let options become ITM
2) Trending days can be managed only by buying so also know your max loss.

#OptionsTrading Image

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More from @sourabhsiso19

15 Jan
Thread:
As 2021 begins, I would like to highlight the importance of perseverance & positive thinking.

The aim of this thread is to motivate people to stay committed to their goals.

Sharing few of accomplishments which I never thought would have been possible.

Dream BIG !
1)I did a 2 day quantitative trading seminar @iitbombay focussed on system driven trading and got a great response.

Being a introvert,I always shied speaking on the stage & this was my first public speaking apperance & learnt the importance of people’s skills.
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I realised the importance of brand building and self promotion.
Read 21 tweets
5 Jan
Thread :

Today I suggested Naukri on on @CNBC_Awaaz and hit upper circuit.

So why did I recommend Naukri (InfoEdge) ?

Analysis

1) Trend :

It was trading at all time high which indicates strong bullish trend

#trading #stocks
2) Strength of Trend:

The red candle formed on 21st dec (circled) was immediately rejected the next day.

This indicates the strength of bulls.
3) Sign of a leader :

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Naukri was around 1600 in March 20 and is almost 3 x and satisifies the critera
Read 5 tweets
20 Nov 20
How to manage straddles :

1) As bnf open was within yesterday range created a 29000 straddle at around 9:30 am

29000 PE sold at 528 and
29000 CE sold at 453

#trading #OptionsTrading
2) Instead of keeping SL on sold legs. I keep SL on otm options in the system

SL was on 28000 PE at 220 (day high)
SL was on 30000 CE at 165 (day high)
3) At 10:15 am, Bnf started to trend down and 28000 PE was bought at 220 and I immediately bought 30000 CE at 110
Read 7 tweets
18 Nov 20
Thread :

We are regsitered as sub brokers with IIFL and Angel Broking & now planning to grow the sub broking business.

Looking to crowd source ideas/suggestions on the same from you guys

(1)

#trading #ideas #OptionsTrading
2) Instead of sending recommendations(like traditional brokers) .. plan is to help traders learn & let them independently take trading decisions.

Ideas:
-Create a telegram channel and share ideas & explain trades with logic
3) Plan is to help traders learn about
-options trading,
-long term investing
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Don’t charge any advisory fee but earn a share from their trades as brokerage
Read 4 tweets
18 Nov 20
At 9:20 am created 29K PE and 30K CE at combined premium of 199.

Logic : Bnf was trading above yesterday high so created position with bullish delta.

The strangle closed around 110.

Key in non-directional trading is creating skewed delta positions as per view

#trading #data Image
Initial buy SL was on 28700 PE above Vwap (95) and sl on 30300 CE around 30 (day high)

Put buy SL above vwap or day high(on otm strikes based on net credit recieved)

Make sure you have net credit even after buy sl is triggered

(2) ImageImage
3) So in non-directional trading create positions as per view and always keep buy stops in otm wings to protect yourself from any big move.

Otm stops also helps in saving slippages.
Read 4 tweets
7 Nov 20
Thread
How to manage strangles dynamically incase of a violent move or IV spike ?

1) Yesterday and infact entire last week if you had created strangles you would have experienced that during upmove only call side were increasing but puts weren’t decaying.

#trading #Options
2)In morning I had created a short strangle
200 lots 25000 PE sell at 102
200 lots 27000 CE sell at 161

You can sell from below image that if I had waited in this strangle till day end I would have lost around -4.5 L

So lets see what all adjustments did I do logically. Image
3)After creating strangles the premiums strarted increasing as puts were not decaying and calls were increasing.
So I had kept 100 lots buy on 26500 CE at 400(day high)
My buy got executed at 400 around 12:15 pm & I exited 25000 PE at 75 Image
Read 10 tweets

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