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.

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