Apr22-W4: Some confident and some lucky mean reversions bring good profits
The week again started with a very big gap down. It opened way below 17200 level where I was expecting it to find support. I did not have much confidence to be very aggressive on mean reversion. Therefore, I sold only a couple of 17000 PE options. I should have sold more.
The rest of the week was quite standard except Thursday. The market kept going up relentlessly. I gave in to the temptation of mean reversion. I sold 17300 CE strike even though the charts were not that solid. I had to average continuously for management. Overall, the quantity became 1250.
I was not able to time the exit. I got greedy and kept waiting. It got a bit nervous actually but I got a lucky red spike and exited. It is another story though that I could have tripled my profits had I kept those options till expiry. But you never know, do you
|Net Profit (after deducting brokerage)||Capital deployed (approx)||Week’s ROI||Total no. of weeks traded till today||Average weekly return till today|
|Rs. 24,073.57||Rs. 15,16,854||1.58%||3||1.41%|
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