Trades

Log from Friday to Thursday

jun22 w1

Jun22-W1: Manic Monday was mismanaged

For the first week of June, I had predicted that Nifty would go until 16450. However, the target was hit on Monday itself. I was carrying with me a bad position in form of 16850 CE. This obviously went deep red on Monday opening.

I deployed my usual strategy of selling ITM options for averaging. I thought I was averaging slowly and steadily. I was not using my home-made calculator though. Later, I found that I had sold too many ITM options too soon. Now my overall P&L was in loss of more than Rs. 1 lakh. I could not do anything as I had exhausted my funds.

There was no choice but to carry forward the problem to Tuesday. Luckily, Tuesday was a gap-down opening and I exited all positions at minimal loss. The rest of the week was consolidation which helped me in earning 1% for the week.

But I am still useless without my excel calculators. I must use them daily.

Net Profit (after deducting brokerage): 18013.94

Capital deployed (approx): 17,50,000

Week’s ROI: 1.03%

Total no. of weeks traded till today: 8

Average  weekly return till today: 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.

May22-W3

May22-W4: The perfect week for selling strangles

This was a week where Nifty ended almost where it started from. Such scenarios work awesomely for strangle selling. The whole week was smooth except for May 18th. I had a strike of 16450 CE which started giving trouble since Nifty was at 16400.

I was able to neutralize the damage by selling equivalent number lots of 16500 CE. I was very unsure of the market direction at that time. Though I had a feeling that Nifty may go down and there was no  need to book loss on 16450 CE but it was only a feeling and nothing else. So I booked it. I have become a bit ok at booking favorable losses. This is good, even though it means that I could have earned another Rs. 24,000

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROITotal no. of weeks traded till todayAverage  weekly return till today
Rs. 40,704.19Rs. 16,31,8862.49%62.09%

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.

may22w3 PL

May22-W2: The strike which I should have let go  

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 ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAverage  weekly return till today
Rs. 40,959.64Rs. 16,31,8861.07%2.51%52.01%

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.

May22 W1 P&L

May22-W1: One of the best weekly returns

Yes, I made it big this time. A weekly return of 4% is way above my expectations. The best part is that I did almost everything properly. I need such returns from time to time because no matter how good it gets, there will always be a few weeks who will take away a lot from me. Is 4% the best that this strategy can deliver? I don’t know. I have earlier seen weekly return above 6% also but unsure if I was doing it right back then.

More than 50% of the total return came from mean reversion trade which was deployed on Wednesday, and was held till Thursday. The surprise rate hike gave that wonderful opportunity. Luckily, my wife alerted me about it. I took the initial  trade but had to soon start averaging quickly. By the end of Wednesday, I was sitting on 22 lots. I was expecting to earn 50% of premium but Thursday open was a dream come true and I earned more than 90%.

The rest of the profits came through the standard strangle trading which I deploy. Most of them came on Wednesday via call options as the market was slipping in deep red. I did well to aggressively roll-in the strikes. I believed on my analysis. I now have started measuring price action which is helping in setting strategy on daily basis.

With such a return, I have reasons to believe that I am doing well. I must maintain the rhythm.

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROITotal no. of weeks traded till todayAverage weekly  return till today
Rs. 61,938.65Rs. 1540927.704.02%42.12%

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.

Apr22-W4-PL

Apr22-W4: Some confident and some lucky trades bring good profits

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 ROITotal no. of weeks traded till todayAverage weekly  return till today
Rs. 24,073.57Rs. 15,16,8541.58%31.41%

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.

Apr22-W2: Good restart to Wannabebull


So the 1st week of Wannabebull’s restart has been quite successful. The market did absolutely nothing during the 4 days of trading and yet, I made a lot of money. I am absolutely stunned by how that happened. I did make around couple of thousands by day trading mean reversals but even if I discount that, the return is higher than expected.

The key reason that I can think is the VIX crash on April 8th. This allowed me to book more than 3K of profit on day 1 itself, while taking new positions quickly. It would be interesting to see how I navigate the coming week as I have trapped myself by taking positions when VIX was at its lowest.  

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. 18,623.74Rs. 11,83,8951.57%125.16%1125.16%

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.

Jan21W4 ROI

Jan22-W4: Mean reversal trade gone well

With less than Rs. 5 lakhs as trading capital, I did not plan to trade this week. However, the first 15 minutes candle of January 24th tempted me to take a positional trade. I took strike of 16450 PE which was very very far OTM.

I did not expect that any management would be required but the market kept falling till 2 PM or so. During this time, I kept adding positions. I obviously ran out of money quickly despite taking hedges. I rolled in the strike and ran out of money again.

With Wednesday being a holiday, the options started deteriorating fast and I was able to close the position in profit. Almost same story unfolded on Thursday as the market opened very week. I took some mean reversion trades which paid well.

Overall, I felt uncomfortable with limited capital availability but this much capital should be good enough for any such opportunities in future also.

So I traversed through the following candles during the week:

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. 19,358.26Rs. 498349.543.88%625.5%3378.08%

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.

Jan21W3 ROI

Jan22-W3: Being not in the game helps

I needed money for some homely affairs. I had to close my positions by Tuesday and withdraw almost 50% of corpus. This meant that I was not in the game on Wednesday. Otherwise, I am not sure if I would have come out unscathed. I believe I played well till Tuesday. I also took some trades on Thursday which worked fine.

So I traversed through the following candles during the week:

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. 8,899.09Rs. 1177450.450.75%47.92%3273.48%

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.

Jan21-W2: Sensible trading and high VIX always helps

With market all set to go long, I had nothing but put options. As Thursday came near, I kept some call options as well which helped in giving good returns. These kinds of weeks make it feel good. Small money made safely is always better than making large money with a lot of risk.

So I traversed through the following candles during the week:

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.14,691.5Rs. 1162758.951.26%92.11%3174.74%

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.

Jan21W1 ROI

Jan21-W1: The means don’t justify ends

Overconfident of mean reversion tactics and filled with greed to recover ridiculous penalty due to SEBI’s shenanigans of last week, I entered the mean reversion trade early. I think it was Tuesday. The trade backfired and I was in deep red.

It was not like I was completely off the mark. On Wednesday morning, I did get a chance to exit almost at breakeven but emotions overcame reasoning. I did not book and watched the trade go back in deep red within rapid fire time.

I knew that the same strike of 17850 CE would not be able to recover by Thursday. I went in by another 50 points and shifted to 17800 CE. I prayed on Wednesday night and Thursday morning luckily opened with a gap down opening. Though the overall profit was good but witnessing a realized loss of Rs. 1.25 lakhs is simply unjustified.

In future, I should exit when breakeven and switch to safer strike until mean reversion target is met.

So I traversed through the following candles during the week:

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. 71,856.3Rs. 1090902.656.58%2658%3075.04%

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.