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 ROI||Annualized ROI for this week||Total no. of weeks traded till today||Annualized return till today|
|Rs. 14,465.91||Rs. 13,50,000||1.07%||74.06%||2||96.34%|
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