nifty index 50 trades

Aug21-W1: Nifty Index 50 Option Trades Destroy it All

I infused Rs. 50,000 from my salary in Nifty Index 50 trades and lost the same amount. It is not only an irony but also a tragedy, a dream crusher and a sad hardcore truth about trading. This was bound to happen. I had been observing the drawdowns for past 2 weeks. Though I wrote extensively about how to prevent losses from getting bigger, they just remained words. The damage to P&L will take a long time to recover. Hopefully, self-confidence will recover sooner.   

So I sold OTM strangles from Jul 30 to Aug 5 whose daily candles were like this:

Here are the results:

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. -46,455.13Rs. 7,04,099-6.59%-97.13%8-16.05%

I did recover approx Rs. 24,000 on Friday as I rolled over the trade. However, I no longer have plans to recover the remaining.

The following is breakdown of week’s positions:

DISCLAIMER: I am not a SEBI registered adviser. All information provided on this website is for educational / informational purposes only and should not be taken as investment advice.

1 thought on “Aug21-W1: Nifty Index 50 Option Trades Destroy it All”

  1. Pingback: Aug21-W2: Nifty Option Trades beat target CAGR due to base effect

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