Sir something came in my mind
How’s the thing for a ordinary thinker like me
I understand market well and I can work with stoploss and I understand market psychology and can work depending upon it
R8 now, bnf is at 43100
Next week, 45400 call trading at 10 rs and 40400 pe is trading at 17 rs
Combinely this position can executed with 42L capital if the position size is 900 + 900
So capturing 24 points make 43200 rs next week by thursday
So it’s kind of very safe 2L rupees in my hand. Right?
It’s very hard for market bnf to move more than 3500 points in a week
So if I have 50 lakh capital and I sell option with collatrol
It’s good r8?
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Masterplan? Except its not!
You have just 1200 points for the call and one overnight move can knock a good chunk off. It might work for a while and… one day…
Anything can happen anytime in the market. Therefore sell strategies like you mentioned will fail when BN moves big and in the process take away all that you made in the preceding profitable trades.
MY PERsonal experience says
This strategy may work 90% time in your favour but 1 big big move against you overnight can ruin all profits you made
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Yea but I will work with strict stoploss and will reduce my capital deployed when there will be key events like monitory policy and budget etc,…
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One misconception is that theata is an edge(free money) but its not, market covers probability. Just back test these type of strategies over long period you will see resulrs just nullify and with charges its negative.
Putting SL gives you edge or adjustments which requires trading skills
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The execution charge will be 220 rs only in zerodha. And yea i will manage my position and will keep position sizing low during key event and I will square off my position if any key level broke against my position. Then will it work?
If you are taking positional short positions stops don’t matter. Stops work only intraday. A huge gap at open against your position and the account capital will be blown away.
Market doesn’t just move big around these published events. The world is dynamic and events can happen out of the blue.
This is trading , it will work untill it will not work 
Everyday there is some event or the other or news flow.
SL is only intraday , you have no control over gap up and down.
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SL works only on intraday my friend…
Good or bad news plays a big role.
If amit shah announces he is leaving bjp and going to congress u will see huge gap down…
Swiss bank announces they have gandhi family 50000 cr in there bank ,then huge gap up in bank nifty …
How will you react to such news ?
Better square off all trades in day or be hedged if you want to play till weekly or monthly expiry
You are selling insurance. So unless you plan to lose big when shit hits the fan, you always buy a cover (spreads, fly & condor)
if i’m not wrong, selling 900quantity for 24 rupees premium works out to 21,600rupees not 2lakhs.
Have you executed this or is it just a theory?