Trades

Log from Friday to Thursday

loss

Sep21-W2: Nifty Option Trades could not recover last week loss

This trend is not my friend. As I was carrying ITM positions, Friday’s gains made my P&L go redder. The problem continued on Monday and I started to panic. My unrealized P&L was crossing Rs. 30,000. Forget last week’s loss, I just wanted to breakeven on this unrealized loss now. On Tuesday, I was only at hairline difference of that breakeven moment when the market reversed and again went back to high. At that point, I gave up and booked loss of around Rs. 35,000. I checked charts and figured reversion is not done yet. I sold some ITM call spreads and recovered whatever I could. Damage to P&L continues.

So I sold OTM strangles and call spreads from Sep 3 to Sep 9 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. -3,023.65Rs. 7,55,676-0.4%-18.82%133.64

The following is breakdown of week’s positions

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.

Sep21W1 money heist

Sep21-W1: Nifty Option Trades mismanaged to cause loss

If I stay with you, if I’m choosing wrong

I don’t care at all

If I’m losing now, but I’m winning late

That’s all I want

I don’t care at all

I am lost

I don’t care at all

Lost my time, my life is going on


It is not like I did not take stop loss. I took it on 17050 CE but immediately sold 17150 CE. Why? Because I wanted to recover the money heist done by Nifty. P&L was situation was not that bad till Wednesday as I did some smart plays between 17150 and 17200 CE. But by Thursday noon, I decided to retain 17200 CE till 1530 and rollover in case of loss. And well, the rest is history. This trend is not my friend.

So I sold OTM strangles from Aug 27 to Sep 2 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. -11,051Rs. 7,16,384-1.54%-55.43%126.01%

The following is breakdown of week’s positions:

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.

roi

Aug21-W4: Nifty Option Trades beat target CAGR

I have clocked my second maximum ROI this week. The highest annualized ROI was 80.68% in the first week of July series. Successes like these are important when the going is good. Selling options is risky and losses are unavoidable. So, maximizing the gains when they come helps in averaging the inevitable red numbers. Nonetheless, it is very important for me to do this analysis only on weekend and not during the week. I could have earned more if I had adhered to this principle.

So I sold OTM strangles from Aug 13 to Aug 18 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. 5,344.17Rs. 7,11,3840.751%47.58%1115.24%

The following is breakdown of week’s positions:

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.

nifty index 50 trades

Aug21-W3: Nifty Option Trades beat target CAGR

In last week’s log, I forgot to mention that I had infused further capital of Rs. 22,000 in this account. With that, the assets under management is now above Rs. 7,00,000. I do often think about taking loan to put more capital. Or maybe someone can invest in this account and I share profit. Or maybe I deploy the same trades in someone else account and share profits. I might pursue any of these 3 scenarios soon. But the catch is that I should be steady and consistent. This week was one of them.

So I sold OTM strangles from Aug 13 to Aug 18 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. 4,809.09Rs. 7,06,5740.681%42.29%1012.27%

The following is breakdown of week’s positions:

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.

nifty index 50 trades

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

I had wiped off 6.6% of my capital in last expiry. However, I had rolled over call options and booked profit on Friday. Furthermore, I further infused capital of Rs. 22,000 so that I can sell at least 6 lots per side. However, I did not have any luck on Monday and Tuesday. My strikes were not OTM enough and I kept adjusting them causing nothing but profits to Zerodha as brokerage. But I am satisfied with whatever recovery I have made. And hopefully, I shall stay on track now.

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

Here are the results (the annualized ROI for week is funny due to this one time recovery) :

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. 26,931.15Rs. 6,79,643-3.96%654.4%99.16%

The following is breakdown of week’s positions:

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.

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.

nifty index 50 trades

Jul21-W5: Nifty Index 50 Option Trades Beat Target CAGR

July 28, 2021 will be remembered as quite a day in history of Nifty Index 50.  The market dropped as if there is no support but there always is. I had written about the support value in my last post and luckily, the market respected it. Even though I could have used that day to make or lose a lot of money, I was occupied with a job interview and could not micro-manage trades.

The P&L screenshot below lies yet again. I witnessed an unrealized loss of more than Rs. 10000 or about 1.55% of deployed capital. This now is my new personal record and I am obviously not proud of it. I really need to think about how to avoid such events.

But there’s another problem called effective utilization of capital. One reason for the ROI remaining in low 30% range is that more than Rs. 50,000 simply remains idle. This happens for at least 3 trading days per week. But that is something which I cannot control.

So I sold OTM strangles from Jul 16 to Jul 22 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 todayAverage CAGR till today
Rs. 3391Rs. 6,50,7080.521%31.03%741.83%

The following is breakdown of week’s positions:

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.

nifty index 50 trades

Jul21-W4: Nifty Index 50 Option Trades Beat Target CAGR

Nifty index 50 could not keep calm last week as it dropped all the way till 15600. Even though I was expecting this to happen, my strike selection was not good. I should not take unexpected July 19 gap-down as an excuse especially when I had been anticipating such drama in my blog posts earlier. I should have adjusted strikes on Monday.

The P&L screenshot below does not tell the story. I was witnessing an unrealized loss of more than Rs. 4000 or about 0.65% of deployed capital. I have made a note of it. When I reach week 13, I shall be updating P&L numbers on homepage and this drawdown will also be posted there. Hopefully, this shall be the max drawdown.

So I sold OTM strangles from Jul 16 to Jul 22 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 todayAverage CAGR till today
Rs. 4,048.75Rs. 6,47,1500.549%32.98%643.63%

Where annualized ROI for week = ((1+week’s return in decimal)^52)-1)*100

The following is breakdown of week’s positions

nifty index 50 trades

Jul21-W3: Nifty Index 50 Option Trades Beat Target CAGR

Based on my previous analysis, I was expecting a drop till green trendline but had no clue what would happen afterward. Though I expected Nifty Index 50 to break green trendline and move to green rectangle, it kept moving up silently. I traded strangles conservatively but maybe I could have been a bit more aggressive. I also traded an intraday sell put opportunity on July 10 but again, my strike selection could have been nearer to money.

So I sold OTM strangles from Jul 9 to Jul 15 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 todayAverage CAGR till today
Rs. 3,953.65Rs. 6,43,1970.615%37.53%545.76%

Where annualized ROI for week = ((1+week’s return in decimal)^52)-1)*100

The following is breakdown of week’s positions:

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.

Jul21-W2: Nifty Index 50 Option Trades beat target CAGR

On Jul 1st, I had sold nifty index 50 strikes which were so out of the money that they became indifferent to anything happening to Nifty. I was not able to book any profit before Monday. Even on Monday, I was scared due to low VIX and again ended up taking very far OTM positions. When I checked P&L on Wednesday, it was showing a profit of only Rs. 1100 or something. Thinking that no-risk-no-gain is the name of the game, I took really really stupid positions, especially 15650 PE. Though I ended in green, this is definitely not how I should trade.

So I sold OTM strangles from Jul 2 to Jul 8 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 todayAverage CAGR till today
Rs. 3,830.73Rs. 6,39,3660.599%36.43%447.82%

Where annualized ROI for week = ((1+week’s return in decimal)^52)-1)*100

The following is breakdown of week’s positions