Trades

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:

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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 ROI	Annualized ROI for this week	Total no. of weeks traded till today	Annualized  return till today
Rs. 26,931.15	Rs. 6,79,643	-3.96%	654.4%	9	9.16%

The following is breakdown of week’s positions:

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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.

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:

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Here are the results:

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. -46,455.13	Rs. 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:

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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.

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:

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Here are the results:

Net Profit (after deducting brokerage)	Capital deployed (approx)	Week’s ROI	Annualized ROI for this week	Total no. of weeks traded till today	Average CAGR till today
Rs. 3391	Rs. 6,50,708	0.521%	31.03%	7	41.83%

The following is breakdown of week’s positions:

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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 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:

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Here are the results:

Net Profit (after deducting brokerage)	Capital deployed (approx)	Week’s ROI	Annualized ROI for this week	Total no. of weeks traded till today	Average CAGR till today
Rs. 4,048.75	Rs. 6,47,150	0.549%	32.98%	6	43.63%

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

The following is breakdown of week’s positions

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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:

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Here are the results:

Net Profit (after deducting brokerage)	Capital deployed (approx)	Week’s ROI	Annualized ROI for this week	Total no. of weeks traded till today	Average CAGR till today
Rs. 3,953.65	Rs. 6,43,197	0.615%	37.53%	5	45.76%

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

The following is breakdown of week’s positions:

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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.