Weekly trading diary : 2nd Feb - 8th Feb 2018

Can’t speak on his behalf, but can only say about myself… Well, I know people reading this will laugh but I am actually scared of buying Options, even in the condition like these days :expressionless: It has become more of a psychological thing that despite knowing that buying Options is less risky than writing options, I just can’t bring myself to buy them unless they are for hedging a short option… although I must admit that writing options have worked well for me…

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these strategies are almost risk free … and i strongly beleive , option sellers have inherant advantage than buyers ( rarely people who buy options will make money )
i mostly trade on events , but seems we need to take a break for few weeks and i am doing this to keep myself busy :smile:

after experimenting so many things for many years , i decided to go for low risk and low return strategies
if some stock is bullish , i always think abt selling puts rather than buying calls

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And I am scared of writing options. Although I know mostly writers make money but I don’t want to take any risk that can bankrupt me. I cut my positions as soon as I think it’s rangebound and enter only if I anticipate big move. You can see in my last trade screenshot there are lot of small loss that’s where I cut my positions then at 2 pm I thought bnknifty will crack I did long straddle and got 10k in profit.

I am interested in writing options I will test some of those strategies when I have made some good profit.

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same here … another reason might be i was working in IT industry and was not able to follow my positions …
developed a habit of selling options ( started hedging once i made big loss )

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Yea I noticed… well if it works for you then it’s good. I guess you are good at estimating volatile moves and also knows when to cut out positions… :+1:

if you hedge it properly then you dont need to bother …

last week iron butterfly , after 700 point move i did minor adjustment … even after bank nifty was 1700 points from my level , i was at 20/25 point loss …
but in one successful condor , i might make 100pts easily …

ideally i shld not have done iron condor today … but i thought mkt wont go down much and premiums will drop after sbi results

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@newguy in stock mkt , if something doesnt work for you , do the reverse and it might work :smile:

thing is someone has 20L and above capital , they cant buy options for the whole money…
ideally they will buy it for 2L max … catch here is , if someone has 20L , its more profitable for them to write for 10/15L rather than buying for 2L

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Yes warren buffet style :slight_smile:

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Why are you going after Deep OTM options. Just because these are cheap, so you are buying them hoping for a huge move. Deep OTM options will not move much unless nifty actually come close to it. it will just take your money away slowly.

No . Nifty is moving 100-200 points …
And As per current 10400 will be not Deep OTM .
But I am marking your point to check and correct my knowledge more and more.
Thanks

My Goodness - What a sell off. Correction at such pace, Indian Investors will be panic today. Expect major corrections. " PAISA SABKO PYARA HOTA HAI " After all we are here to MAKE money, not to loose. If Corrections happens slowly, it has chances to digest, but this time NO.