Escape's Options Trading Diary - Phase 2

[escape]

Yes folks, that was wrong decision to keep position over-night, against market.

 

[escape]

Remember Escape bro, I told you earlier. Never go against the market trend. Don't ever make the mistake of questioning the market level and performance. Hope you have learned your lesson.

Bro, to be true yesterday as market was showing in-decision, I thought it is sign of reversal, hence I took position and kept it over-night.

What would be your decision in case if you were holding 4 lots of PE 5800 now? Will you keep it or sell it now?

 

[escape]

20 pts is good upside and the puts are going to lose value very fast. So, it would be best if you sell the puts at the opening and pick them up later at 6-7 points lower, if you still believe that a downside is coming.

Timepass, thank you for your timely advise, but I didn't able to square-off. As you said, market is on same direction.

 

[timepass]

Well, this is what I do if my overnight positions (rare) go bad. Sell first and then buy lower later. Brings down the cost and keeps my trade in line with my thinking. Many analysts believe 5820+ to be profit taking area. But round number attraction may take nifty spot to 5800+.

 

[escape]

Well, this is what I do if my overnight positions (rare) go bad. Sell first and then buy lower later. Brings down the cost and keeps my trade in line with my thinking. Many analysts believe 5820+ to be profit taking area. But round number attraction may take nifty spot to 5800+.

That's important tips. Anyway we are near to 5800, so I'll hold it for sometime or may be square-off 2 lots.

 

[soft_trader]

Bro, to be true yesterday as market was showing in-decision, I thought it is sign of reversal, hence I took position and kept it over-night.

What would be your decision in case if you were holding 4 lots of PE 5800 now? Will you keep it or sell it now?

I would immediately sell it. Remember, great Profits are made sitting on the profitable positions long enough. loss must be cut off immediately. This market is clearly going up and have broken out of 5700 last week. It is not wise to expect 50,80,100 points daily on nifty. Nifty has consolidated for 3 days above 5700, that's natural for it's next upmove. The most important of any market it it's closing. Have you noticed for the past few session despite the intraday dip and narrow range market is closing at the day's High. Which indicates the strong uptrend of a market.

Anyway I am just on the opposite of your position. I have 5800CE

 

[sumosanammain]

I would immediately sell it. Remember, great Profits are made sitting on the profitable positions long enough. loss must be cut off immediately. This market is clearly going up and have broken out of 5700 last week. It is not wise to expect 50,80,100 points daily on nifty. Nifty has consolidated for 3 days above 5700, that's natural for it's next upmove. The most important of any market it it's closing. Have you noticed for the past few session despite the intraday dip and narrow range market is closing at the day's High. Which indicates the strong uptrend of a market.

If he is smart enough to initiate a position, I am sure he is equally smart enough to know when to close it.

 

[NIFTY_TRADER]

Bro, to be true yesterday as market was showing in-decision, I thought it is sign of reversal, hence I took position and kept it over-night.

What would be your decision in case if you were holding 4 lots of PE 5800 now? Will you keep it or sell it now?

dear friend
i am also in same position
i am holding 5700 put and nifty short

lets hope some intraday correction to get out of position:thumb:

 

[timepass]

That's important tips. Anyway we are near to 5800, so I'll hold it for sometime or may be square-off 2 lots.

The thing with holding is - time decay. Yes, the trend is up. But it's also true that everything is overbought and a correction is imminent. Now, we don't know when it will come, but come it will. So, while you are holding the shorts, your premium is getting eaten up. So if you can shave off 3-4 points intraday, it helps negate the time decay.

 

[onlinegtrash]

dear friend
i am also in same position
i am holding 5700 put and nifty short

lets hope some intraday correction to get out of position:thumb:

I just swooped up few OCT5700PE @ 41 ...

My hypothesis goes something like this:

Think if you are a huge institution who wants to take a big short position.
You want to get your puts as cheap as possible and you need deep liquidity to fill your big stomach for puts ! Where can you find that? That's at 5800 key level

If that hypothesis turns out to be wrong (or just too early), my account shalt be slapped with a loss! ( which I think is less likely )