My learning from today's loss

I started writing option few days ago and making good percentage of money everyday. Not a single loss making day. Which makes me think option writing as easiest thing.
But today I discovered a hole in my trading style. I sold 3 plot 11100 pe at 11.8 and 11800 ce at 4.75 . At that time market is not moving significantly and I smell some easy money. Keeping no stop loss . I am very reluctant in placing physical stop loss , thought process was that price may hit stop loss and come down below sell price.
When Nifty was at 11500 , i thought that it will
Break upside and I close ce at 4.4 and keep pe option. Then suddenly nifty start to falling and no hedging is there. I can’t decide what to do , it’s possible that option value rose to 18-20 and then come back to 6-7 . My loss increases.
Then I thought that option is shadow of nifty future, where future goes option follow it. Then I fixed a stop loss in nifty future. When that stop loss breach I excited my sold option at 16.5 booking 1k loss.
So my learning from today’s loss is when entering a position don’t square of hedge part and a strict stop loss in underlying. Whenever stop loss breach exit at market price.!


Good that u come out in green at the day end.

But ur understanding with option pe & futures is not correct. Option prices are depending on underlaying script & option Greeks whereas futures are totally depending on underlaying script (stocks or index).

Most important things are

  • do not average in loosing trade
  • stoploss is must…close trade quickly if it is going down.
  • for profit let it running.
  • if you are booking profit at 5k make sure you you closing trade at max in 2k. Risk reward ratio should be good…
    Else even after 95% good trade you can still be in big loss
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If option Greek kept aside, option follow future more precisely than underlying it’s my observation. But theoretically option should follow underlying not future. I may be wrong because I am new to option writing. Thanks in advance.

My account value don’t permit me averaging. With 45k I only sold 3 lot ce and 3 lot put at the same time .no money left.
As you said stop loss is must. No stop loss no trade. I have to work on RR ratio. My most trade is bad RR ratio but high probable trade.

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Yes…don’t trade without stoploss it’s ok to have low profit or no profit but one mistake can take away profit n capital of all trades

I understand nothing

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hi, are u able to sell 6 lots with 45K margin, with which broker

From the screenshot, it is angel broking

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It is angel broking. 3 lot of call and 3 lot of put total 6 lot. When 3 lot ce/pe sell margine blocked ~36k and if we want to sell 3 more lot on the other side i.e 3 lot pe/ce then total margine blocked ~45k. In zerodha I can sell only 1 lot, here 3+3 total 6 lots with same money. 10x leverage on option writing brokerage is same as zerodha. See the screen shot 3+3=6 lots.

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Hi @gopchem I want to know how is the user interface and overall usability of angel broking app compared to Kite, is it better ?
And how is the web version of the trading platform if you can tell ?

This is going to end soon.
No more leverage.

Trading Angel broking from 16-September. Can’t say much but mobile app and web platform is good for trading purposes. Zerodha platform become standard in it’s field. I occasionally see their charts.
In short zerodha platform is most simple but angel broking platform is most informative.
Making money everyday trading with 10x leverage. Happy with angel broking, no issue still now.
Today 4 trades taken without any problem.

Fno products itself leveraged . Brokers giving extra leverage on it . If leverage gone for ever little trader like me have to take more risk making same money.

I think you must be knowing of recent SEBI order.
Leverage has been ended in phased manner