trading after a week. happy to report decent profit
Thanks.The loss on first 2 trades was 15% and I kept my cool.
. . Did one more trade in PC Jewellery.Made 15% more return.Today’s return 100%.
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Net loss third day in a row! I’m taking a break this week. See you’ll next week and happy trading. 
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Bro whats your RR ratio?
Can any experienced options trader help me out with this.
Today I created a synthetic short call straddle as I thought Nifty will remain range bound in near future.
What should be the future course of action ?
How to correct this strategy if Nifty crosses 10800?
(nifty fut is bought 2 months back)
Thanks
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Hi @maddy_Des
When you say rangebound, do you mean rangebound with the top end of the range at 10800? Here are my immediate thoughts on this:
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You are not perfectly delta neutral on this. That would happen if you have sold 2 10750 calls. With 10600 CE sell, you are playing a little bit of -ve delta game. Which is completely fine if you think 10800 is the top of the range, and there is a chance it will drop towards the middle of the range from here. Which is great also because if that happens you make more Theta on still days.
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If you think crossing 10800 = a breakout, or it will not come below 10800 after crossing:
a) competely unwind this trade at 10800, booking a bit of losses on the options, or,
b) buy another future on crossing 10800 and neutralize delta on this trade. This is assuming that you have a view that at the end of the trade the future will be above 10800. In this case now you are realizing the portfolio like a covered call on two futures. This is an entirely legit option strategy, but this is because you have a directional view. To put another spin on it, you have to delta hedge on this strategy by buying a future soon. But since you have room for a maximum of 1 more, the questions is when do you fire your last bullet. That depends on your view on 10800. If you think if it crosses, then it is a break out, you should do it as soon as you are sure about the break out.
Hope that helps.
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Which broker are you using.
Upstox why?
Just curious.
Hi @maddy_Des
If I am correct - this is your strategy in its correct form -
You can see the payoff graphs and as you have rightly identified if NIFTY crosses 10800 … you start taking hit pretty fast.
If you believe that NIFTY will continue to rise … You can simply BUY another NIFTY FUT and preserve your profits to the tune of 30K when NIFTY crosses 10800. When you buy this FUT your average cost will come around 10626. I have plugged in those values and this is how your journey looks there onwards if NIFTY continues the run.
You can use the app Risk - Strategize Your Trades to further make those scenarios and see your payoff graphs under Basket Order. Hope it helps.
Disclaimer: Not recommending anything here. But just an option - double entendre 
Cheers,
Risk.Money
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Sorry about the screenshots … if thats what you mean by overload … was just trying to help you see it through your strategy across the month and how it can be managed … 
Anyhow, Risk - Strategize Your Trades revolves around identifying, monitoring and controlling risk / strategizing your trades - be it concentration risk, inflationary risk, Hedging, PCR ratio, one click cover all positions … etc. Whatever risk you can think of - I would like to add it and do Risk Analysis to help you see it through. Options are also one of the ways of managing risk. I just showed what was relevant … to your strategy.
Do explore … Would be happy to help.
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That’s not what I meant, bro.
I just found out that Zerodha has 2 options trading platforms.
Risk && Sensibull.
That will be overchoice for traders.
Off-course I understand buddy. Was just pulling ya 
Liked your approach to finding critical points in payoff graphs for reversals and putting it in diary. Helps tremendously in the longer run.
