100% profit in 6 months...!

[VJAY]

deleted....................

 

[AVINDADA]

Dear Sir,
I have Bought Nifty Calls and Put of Feb 2010
5000CE at 85
5100CE at 55
5200CE at 34

Also holding the Puts of
4700PE at 95
4800PE at 120.

Currently all are down? How should I trade in near future for these holdings?

AvinDada

 

[linkon7]

Dear Sir,
I have Bought Nifty Calls and Put of Feb 2010
5000CE at 85
5100CE at 55
5200CE at 34

Also holding the Puts of
4700PE at 95
4800PE at 120.

Currently all are down? How should I trade in near future for these holdings?

AvinDada

Your lower break even is 4555 and upper break even is 5230. only a massive fall or a massive rise can save you. If nifty decides to take a breather or just move around the 4900 levels...then losses will keep mounting.

So far loss is about 50 points plus brokerage. My suggestion is, get rid of the 5100 call, 5200 call and 4700 put. Use this money to buy 5000 call, if 4930 is broken on the upside. IF NF fails to break 4900 even , then buy a 4800 put.

In future, avoid buying options without having a concrete plan. AW10 has a thread on low risk options strategy which is a excellent place to start learning how to build positions. PM him the details of your position and he is the best man to recommend a solution out of this.

 

[linkon7]

END OF THE WEEK'S REVIEW:

[B][U]Date : Performance [/U][/B]
27th Jan: Unrealised profit of 5700 /-
28th Jan: Unrealised profit of 17,300 /-  booked profit of 13,650 /-
29th Jan: Unrealised profit of 37,200 /-  booked profit of  7,500 /-  (total Profit booked till date = 21,150 /-)

The best and the most difficult success mantra in our market is to "Cut your losses short and let your profits run". I always cut both my losses and profits short. ST-da warned me that i'll always remain a 2 bit trader unless i let my profits run and add positions to winning trades. Wednesday, Thursday and friday. This 3 days has been a big eye opener for me. I realised that riding a trend is seriously more profitable than having multiple trades of 10-15 points. Friday, i just closed my short positions at 4780 with reversal at 4775 and let the long ones ride.

I used to scalp for a daily profit of 3 - 5 K or a max loss of 2 K. If either extreme got hit, i would stop trading and sit with my collection of indicators and compare their performance live and make notes. I got a PM from a mentor saying that i am not taking this like a business. A shop keeper doesnt down his shutter just because he had a good sale in the first 2 hours. Objective is to trade the plan and take every opportunity that comes my way.

My 2 month's tgt was 50 K. After just 3 marvelous day of trading, 21 K is already in the bag and another 37 K is unrealised profit. IF nifty decides to move around like the way it did for the next 3 weeks, and my luck holds, then i'll be able to achieve 50% of my tgt by Feb end. AMEN...!

 

[ghosh_ak34]

Dear Linkon,

Good to know that you are going for this challenge. You have already achieved your first target. Curious to know your profit after brok etc. I heard scalping eats money as brok. etc. hence this query.

Regards

 

[linkon7]

Dear Linkon,

Good to know that you are going for this challenge. You have already achieved your first target. Curious to know your profit after brok etc. I heard scalping eats money as brok. etc. hence this query.

Regards

I think its a fear people have to take a trade, fearing that if they go wrong, they'll end up making the broker happy. A lot of it has to do with break even being high. If the break even is 5-7 points, then you need more confirmation before u pull the trigger. That also is the catch. If a trade is going to give 10 points, u wait it out till almost 4 points are gone and then enter. At 10 points profit, they wonder, if they exit now, they are at break even. First sign of weakness, they either exit or they hold on with hope that their Sl doesnt hit. If the market does turn, then the next trade gets affected.

Brokerage is just part of the cost of a trade. Unless its low, slippage and other cost of trading will affect your ability to get in early. I used to enter with 4 lots, exit 50% at 7-10 points just to ensure my if SL is hit on the remaining 50%, I end the trade in the positive. If i feel there is a 5 point in a NF trade, i'll jump in, 2 points go to my broker, 3 comes to me... I generate a lot of brokerage. So what. I never know which trade is going to be the big one. So i attempt all of them. My system is designed to get me in early. This has a reverse effect on trending days. where i get whipped a lot. But when market is sideways, i do good. My problem was with exit and patience. The moment, trend turned neutral, i am out of the trade. 70-80% of the time i dont even wait for my SL to hit.

For the past 2 days, i let my SL hit. This one change in trading mindset, changed the outcome of the trade drastically. I played with much lesser volume i do normally, but result is definitely better.

So far 21 K is booked and another 37 K is m2m profit.

There is a trick in this strategy. I am not hedging the straddle with NF, I am hedging NF with the straddle. The NF leg is the biggest wealth builder / destroyer. If I let it ride to the SP, then I lose more than I gain from the straddle. I need to ensure that 2 of the legs are profit generating and the other is not loss making. when i doubt, I slam all 3 legs, As long as NF direction is ok... things will work out...

 

[sumitdasjoshi]

Well it great to know that you are alredy in decant profit

 

[Luv_Stocks]

Let me put it in a different perspective to your target...

You are playing with 2 lots of NF and 4 lots of ATM options. The options have a delta of 0.5

You are targeting to achieve 2 L but your exposure is :
2 lots of NF = 4900 * 50 * 2 = 4,90,000 /-
4 lots of NF options having 0.5 delta = 4900 * 50 * 4 * 0.5 = 4,90,000 /-

a total of 9,80,000 /-

so, 2 Lakh target is just 20.4% in 6 months. Why should it be so tough ?

58 K is just 6% in 3 days...

Now let me grind you a bit...:annoyed:
on Wednesday : Days range was 4963 - 4832 = 131 points. you played with effective 4 lots. so your day's target was 131 x 2 x 80% = 209 points. you achieved 57 points. thats 25% of your day's target.

On Thursday : days range was 4935 - 4823 = 112 points. You played with effective 8 lots. so your day's tgt was 112 x 4 x 80% = 358 points. You achieved 252 points. Thats 70% of your day's target.

On Friday : days range was 4890 - 4757 = 133 points. You played with effective 4 lots. so your day's tgt was 133 x 2 x 80% = 212 points. You achieved 274 points. Thats 130% of your day's target. BUT the entire thing was pure luck. long at 4780 reversal at 4775. You left the terminal. You didnt ask me to square off the trade nor call Moushami to look after the trade. What if market decided to take your reversal and then close where it. You didn't make the delta neutral at the end of the day. Anther grave mistake. If we have a gap down on Monday, you are letting market take back what it gave you.

Never get cocky. I always tell you growth is exponential but converse is equally true.

I hope you take this in the right spirit. Market always punishes stupidity. What you did on friday was stupidity. accept that...!

 

[shankarss]

Hi

It is not that much difficult to achieve 100% return in 6 months time. It is possible very easily trading in call & put.

Visit :

 

[linkon7]

Let me put it in a different perspective to your target...

You are playing with 2 lots of NF and 4 lots of ATM options. The options have a delta of 0.5

You are targeting to achieve 2 L but your exposure is :
2 lots of NF = 4900 * 50 * 2 = 4,90,000 /-
4 lots of NF options having 0.5 delta = 4900 * 50 * 4 * 0.5 = 4,90,000 /-

a total of 9,80,000 /-

so, 2 Lakh target is just 20.4% in 6 months. Why should it be so tough ?

58 K is just 6% in 3 days...

Now let me grind you a bit...:annoyed:
on Wednesday : Days range was 4963 - 4832 = 131 points. you played with effective 4 lots. so your day's target was 131 x 2 x 80% = 209 points. you achieved 57 points. thats 25% of your day's target.

On Thursday : days range was 4935 - 4823 = 112 points. You played with effective 8 lots. so your day's tgt was 112 x 4 x 80% = 358 points. You achieved 252 points. Thats 70% of your day's target.

On Friday : days range was 4890 - 4757 = 133 points. You played with effective 4 lots. so your day's tgt was 133 x 2 x 80% = 212 points. You achieved 274 points. Thats 130% of your day's target. BUT the entire thing was pure luck. long at 4780 reversal at 4775. You left the terminal. You didnt ask me to square off the trade nor call Moushami to look after the trade. What if market decided to take your reversal and then close where it. You didn't make the delta neutral at the end of the day. Anther grave mistake. If we have a gap down on Monday, you are letting market take back what it gave you.

Never get cocky. I always tell you growth is exponential but converse is equally true.

I hope you take this in the right spirit. Market always punishes stupidity. What you did on friday was stupidity. accept that...!

Every time i blow a bubble, you puncture it. Thanks...!