The downtrend was written on the wall and many of my blogs. Nifty was sliding heavily and I was going fine. The strike of 15900 PE started giving problems. To counter the problem, I opted for mean reversion and sold 16100 PE on Wednesday. The plan was a success and I exited from 16100 PE.
However, I did not exit from 15900 PE. Why? Because I stupidly believed in the Thursday expiry. Also, I did not want to have a red figure on my otherwise super green P&L. I was in a profit of around Rs. 65K on Wednesday.
Nifty showed no mercy for my foolish behavior. It crashed and burned. I added fuel to the fire by again opting for mean reversion. This is despite knowing well that the strategy won’t work at all. I eventually ended up with a loss of around Rs. 45K on that strike.
A known lesson got revised. A strike which gave problem will continue to give problem. Exit it at the earliest chance
|Net Profit (after deducting brokerage)||Capital deployed (approx)||Week’s ROI||Annualized ROI for this week||Total no. of weeks traded till today||Average weekly return till today|
|Rs. 40,959.64||Rs. 16,31,886||1.07%||2.51%||5||2.01%|
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.