Escape's Options Trading Diary - Phase 2

[escape]

Here is log as of last session.

Log:
NIFTY 25Oct12 CE 5700.00 (B) 100 @ 111.75 (S) 100 @ 104.75 (P/L) -700.00
NIFTY 25Oct12 PE 5800.00 (B) 400 @ 120.96 (S) 100 @ 126.48 (P/L) +2208.00


Result:
After deducting all charges: Rs. +1395.56

Capital Status (Since September):
Exact Initial Capital: Rs. 45,000/-
Current Ledger balance Rs. 30634.66 (-14365.34)

Learning/Remark:
After placing order for first trade, I realized there is no good momentum, I thought of updating limit price to higher values, but my order got executed while changing order. I should have squared-off realizing mistake, but because of "hope" took hit of 7 points.

For remaining trades, kept SL little higher and that saved me hitting SLs and at the end, had positive results.

 

[escape]

Bough Nifty 12OCT2012 CE 5700 @ 97.75,

Exit @ 101.75, profit of 4 points, less brokerages.

 

[escape]

Bough Nifty 12OCT2012 CE 5700 @ 93.75, SL 88.75, CMP 91.80

 

[escape]

Also Bough Nifty 12OCT2012 PE 5800 @ 109.75, SL 101.70, CMP 110.00

 

[escape]

Bough Nifty 12OCT2012 CE 5700 @ 93.75, SL 88.75, CMP 91.80

Exit @ 95.75, profit of 2 points, less brokerages.

 

[gunsho]

Exit @ 95.75, profit of 2 points, less brokerages.

Just a curious question. Since most of your trades are for quick profits and no overnight positions, why not futures? There we can make ~10 points in such quick runs right? Or you are doing options because capital required per lot is more for futures and with same capital, we can trade multiple lots in options?

If it is ok to reveal, kindly share your deal with your broker. The reason why I am asking is, I am using Zerodha, for STT/brokerage, approximately I need 1.5 - 2 points per trade (buy+sell). So anything above that will be my profit.

 

[escape]

Also Bough Nifty 12OCT2012 PE 5800 @ 109.75, SL 101.70, CMP 110.00

SL hit @ 103, loss of 6.75 points, less brokerages

 

[escape]

Just a curious question. Since most of your trades are for quick profits and no overnight positions, why not futures? There we can make ~10 points in such quick runs right? Or you are doing options because capital required per lot is more for futures and with same capital, we can trade multiple lots in options?

If it is ok to reveal, kindly share your deal with your broker. The reason why I am asking is, I am using Zerodha, for STT/brokerage, approximately I need 1.5 - 2 points per trade (buy+sell). So anything above that will be my profit.

You are correct because of fund requirement, I have opted for options. Also its high risk and high gain. So if I can manage risk or control losses in options trading, I can handle other instruments much easily in future.

For broker I'm using RKSV, I'm paying monthly fees of around ~2k, and per trade, fraction of STT and other charges (as standard). So as my volume increases, my relative charges per lot decreases.

I guess per lot options STT/other charges are lower than futures, as fund invested is low in options compared to futures.

 

[escape]

Bough Nifty 12OCT2012 CE 5700 @ 103.25, SL 93.25, CMP 102.45

 

[escape]

Bough Nifty 12OCT2012 CE 5700 @ 103.25, SL 93.25, CMP 102.45

Exit @ 101.25, loss of 2 points.