Escape's Options Trading Diary - Phase 2

[escape]

Folks, by end of this series, I'll close this thread.
I'll start new thread which will have different asset class and not only focused on Options only.

 

[Gandhar.]

Folks, by end of this series, I'll close this thread.
I'll start new thread which will have different asset class and not only focused on Options only.

:clap::clap::clap:

 

[escape]

Here is log as of last trading session.

Intraday (Naked) trade:
NIFTY 29Aug13 CE 5500 (B) 8000 @ 22.75, (S) 8000 @ 25.75, P/L +24,000
NIFTY 29Aug13 PE 5200 (B) 14000 @ 26.69, (S) 14000 @ 26.73, P/L -560

Naked Positions Holding Overnight:
NIFTY 29Aug13 PE 5100 (B) 3000 @ 30.73, (S) 3000 @ 26.00, P/L -14,190


Strategy Based Trade - August Series: Open
NIFTY 29Aug13 PE 5800 (S) 300 @ 425.00, LTP 387.65
TBD

Current Realized Return on Strategy Trades: -36,717.50
Current Unrealized Return On Strategy Trades: +11,205


Learning/Remark:
P/L excluding brokerages and taxes.

For Positional (Strategy) trade, no change today.

For Naked Positions Holding overnight trade, squared-off NIFTY 29Aug13 PE 5100

For Intraday (Naked) trade, traded NIFTY 29Aug13 CE 5500 and NIFTY 29Aug13 PE 5200.

 

[escape]

No updates, position remains as it is.
Avoiding trades and concentrating on drafting new trade plan (rules) to trade Futures and as well as Options.

Happy Trading.

Regards,
Escape

 

[escape]

Dear Escape,

IMO you are doing better in intraday trading than swing trading (holding overnight)................
Better to concentrate on intraday...........

Happy trading...
Veera.

Dear Veera,

Yes, this is correct observation.
Thank you for suggestion.

As per plan, most of time I'll be doing intraday except for levels which are on higher time frame.

Happy Trading.

Regards,
Escape

 

[escape]

Here is log as of last trading session.

Intraday (Naked) trade:
None

Naked Positions Holding Overnight:
None


Strategy Based Trade - August Series: Open
NIFTY 29Aug13 PE 5800 (S) 300 @ 425.00, (B) 300 @ 496, P/L -21,300
TBD

Current Realized Return on Strategy Trades: -58,017
Current Unrealized Return On Strategy Trades: None


Learning/Remark:
P/L excluding brokerages and taxes.

For Positional (Strategy) trade, closed positions in loss.

For Naked Positions Holding overnight trade, none

For Intraday (Naked) trade, none.

This series didn't worked at all for me, most of my analysis went wrong and because of this, in this last week, I avoided trading Options.

It is being almost a year and now along with Options, I'll be trading Futures too. So I'm closing this trading diary. I'll start new thread for same.

 

[DanPickUp]

@Escape

Sad to see that this month was not in your favor. Hope you did your analyzes to find out what you did wrong and not understand.

Hope also that you do not analyze to much about your intraday entries and instead play a bigger time frame with more lots. I am not sure if you run like many here behind short time trends, try to find out what this and that number and OI and what ever means and finally still did not make any or just little money with option trading in such a nice market. The most successful trader here I have seen so far in this month, (Not include ST) is a trader which enters in the morning at 9:00, regardless what market will do and then adjusts his trades according to market moves. But he trades futures on a pure intraday play.

If you play the bigger TF with your options, you can use short time frames to hedge your positions and you will not need to many adjustments to stay with any trend. And if the trend not continues, you have done what you have to do on the smaller time frame, as your hedge is done.

Now I wish you good luck with your new thread and many good trades the next month.

Take care / DanPickUp

 

[escape]

@Escape

Sad to see that this month was not in your favor. Hope you did your analyzes to find out what you did wrong and not understand.

Hope also that you do not analyze to much about your intraday entries and instead play a bigger time frame with more lots. I am not sure if you run like many here behind short time trends, try to find out what this and that number and OI and what ever means and finally still did not make any or just little money with option trading in such a nice market. The most successful trader here I have seen so far in this month, (Not include ST) is a trader which enters in the morning at 9:00, regardless what market will do and then adjusts his trades according to market moves. But he trades futures on a pure intraday play.

If you play the bigger TF with your options, you can use short time frames to hedge your positions and you will not need to many adjustments to stay with any trend. And if the trend not continues, you have done what you have to do on the smaller time frame, as your hedge is done.

Now I wish you good luck with your new thread and many good trades the next month.

Take care / DanPickUp

Dear Dan,

First week was awesome for me, I got big profit. But when NIFTY touched around 5700 for first time, there onward, some how my analysis failed back to back.

Most of time, my trades were correct but didn't booked profit at the right time and took long time to book loss and gradually increased my loss.

Also, I have analyzed I did few forced trades in between, that turns out to be disastrous.

As Volatility increased (VIX from 16 to 36) later on, most of my trades turns out RED. Also my bigger challenge was deciding SL for options based on NIFTY level.

Analyzing all this, I have decided to start trading NSE Futures and commodities Futures (as on some days I can trade only in evening only) along with Options. I will be trading Options only on higher time frame analysis. For futures, I'll be using smaller time frame.

Happy Trading.

Regards,
Escape

 

[DanPickUp]

Dear Dan,

First week was awesome for me, I got big profit. But when NIFTY touched around 5700 for first time, there onward, some how my analysis failed back to back.

Most of time, my trades were correct but didn't booked profit at the right time and took long time to book loss and gradually increased my loss.

Also, I have analyzed I did few forced trades in between, that turns out to be disastrous.

As Volatility increased (VIX from 16 to 36) later on, most of my trades turns out RED. Also my bigger challenge was deciding SL for options based on NIFTY level.

Analyzing all this, I have decided to start trading NSE Futures and commodities Futures (as on some days I can trade only in evening only) along with Options. I will be trading Options only on higher time frame analysis. For futures, I'll be using smaller time frame.

Happy Trading.

Regards,
Escape

Good decision. Many others did it in this forum and show that they are successful with that step, so you will be the next one. :thumb:

DanPickUp

 

[DanPickUp]

As Volatility increased (VIX from 16 to 36)

Escape

Interesting number, as I did not have that 36 for sure. I tested some formulas in your market just to test if they would work also in markets I do not trade, and they gave me around the number of 35. So that is a prove from your side to what I have tested. Thanks to post that number.

What about BNF? Do you have those numbers also from that market or any link for the future I can see the vola in that market?

DanPickUp