This website’s main purpose is to act as a log of ideas and trades which I undertake on weekly basis. Maintaining logs is one of the most important aspects of being a disciplined trader. However, since log maintenance is not exactly a very exciting or motivating activity, I decided to build this website to stay diligent and entertained at the same time. I will keep these logs simple so that readers would be able to understand and perhaps take such trades on their own if they wish so. Lastly, I hope to receive feedbacks from this website to improve trading skill or devise new strategies.
My trading strategy is highly conservative in nature. I will be selling far out of the money weekly options in direction of the trend. I may sell options on the other side as well if things don’t go according to plan. I believe that even if my analysis is wrong, theta decay of options can help in making money. I would be keeping a stop loss between 200 to 400% of my selling price, depending on time to expiry. I have observed that the strategy holds potential to give a return of more than 15% on annual basis. It does not require a lot of monitoring also.
Here’s a breakdown of the site’s pages:
- Plan: Posts here shall briefly describe
- What happened to Nifty in previous week
- Daily timeframe chart with support / resistance levels
- Possible scenarios for week ahead
- My bias and trading action plan
- Trades: The page shall mainly display screenshots of P&L and order log, along with ROI numbers. In case a trade goes in loss or if I faced any challenge, I would be writing my experience
- Blog: This is the page to vent out my wishes, experiences and learning. Posts here can be absolutely random
There shall be a new post on all the above 3 pages every weekend. Since the 3 are correlated, I shall be using a common heading syntax so that it is easy for reader to know what ‘trade’ and ‘blog’ is an outcome of ‘plan’. The syntax is <Month><Year><week> wherein week number is governed by Thursday.
- Education: I like to document whatever I learn in fundamental and technical analysis. I shall now be using this page for the same purpose, but this is only for new learning and not what I already know. However, I would be more than happy to write on any topic if I receive a reader’s request. Thus, the frequency of posts here shall be random.
- Watchlist: This page shall contain daily timeframe charts of selected large cap and mid cap companies which are fundamentally sound and make sense for long term investment. I am planning to track these and either take positional trades or invest for the long run. At least one post per month can be expected from this page.
Most people who trade options do it for the purpose of getting rich overnight. While it is possible, this website would not be able to serve that purpose. At the risk of being discriminatory, I believe that this strategy is best suited for women who are looking for work-from-home careers and also for anyone who wants a tiny little second stream of income. Selling options in India is a costly business as 1 lot needs an approximate margin of Rs. 1,25,000. Thus, meaningful trading requires an initial investment of at least Rs. 5 lakhs.
I feel or at least hope that blogging shall keep me consistent and profitable. All screenshots on ‘Trades’ page shall be unedited images. It would be great if I can connect with more experienced traders who have been selling weekly options so that we can share ideas. If you are one of them, please leave a comment here or connect using the form at bottom of home page.