Ape22W3 P&L

Apr22-W3: Lucky results of a scary week

The week started with a very big gap down. It in fact opened at the level at which I was expecting it to find support. This obviously caused my put options to go in deep red. I had a bad feeling about market on Monday. I believed that the market could go down all the way to 16800 if 17000 was breached.

Therefore, while I did take mean reversion trades, I did not carry them for Tuesday. Luckily, the market opened a bit higher on Tuesday and I was able to exit my put positions. But then, I took new put positions thinking that the worst was over. But ignoring my own analysis is often a bad idea.

The market went down a lot on Tuesday. It crashed an approx. 2.5% within 1.5 hours. I don’t remember this type of momentum over the past year or so. I was not prepared. I simply averaged by put positions and hoped that theta decay will help.

But then there was a gap up on Wednesday, allowing me to exit all. The past week was as crazy as it gets. I could have made a lot of loss, but then I have recently learnt that I deserve to win. This feeling and a lot of luck helped me sail through this week.

I think gaps are going to be the new normal. I hope the intensity gets normal though.

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs. 14,465.91Rs. 13,50,0001.07%74.06%296.34%

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