My Daily Options Trading Diary

[findvikas]

I may be wrong but I do not see any upside in this counter after the stake sell at 95... which will act as strong resistance now. Also, similar to NIFTY chart... Suzy also broken the rising wedge.. my targets will be around 85-80-77 on the downside and the SL is a break of 101 in SPOT on the upside.

 

[lazytrader]

I would have preferred Suzlon 100CA Oct series at around 2.8.

Buy or sell?

 

[AW10]

Vikas, good to see the shift in your view on Suzlon. Thats is one of the sign of Professional trader.. Trade what u see.. not what u think.
Remember, some days back I was commenting on another post in this thread where peson was long 105 Suzlon OCT strike with breakeven at 113 rs or so.

All the best.

 

[lazytrader]

@vikas

Too much activity since AW's post, hehe... I edited my previous post, but re-posting in case you missed it..

"There are some trades with very small profit Rs.300,600 are these scratch trades? (closed prematurely? If you were not stopped out or reached target and you close a trade at around BE assuming the trade was going to be a loser or the trade was going nowhere then it's a scratch trade and you have to remove them from the analysis). If you have such trades then calculate the avg.win/loss and win% without it and post them here."

 

[findvikas]

A BIG thanks to you all LT, AW & SM
I will go through all the posts once again in the evening and reply, I am sure I am in right hands now and will soon learn to walk on my own.

 

[praveen taneja]

Buy or sell?

:rofl::rofl::rofl::rofl:

 

[lazytrader]

Vikas, I agree with LTs comment.
I have observed that you prefer to selecting OTM strikes with directional calls from your chart reading.
You are fairly correct on direction reading.. but u have delayed profit booking (maybe emotion of greed to be watched here).. and and hold on to it.
Just to see that OTM strike has also lost the value equally fast.
So you got to be quick in playing OTM strikes - quick in, quick out.
Rule of the game is different for ITM strikes.

Maybe you would like to address - SELECTION of STRIKE as one of the area.
Another area should be position sizing and exit strategy.

Just a tip, if your mindset is toward playing OTM strike, then u can balance it out with 1 lot ITM + 1 lot OTM on same scrip..Atleast that way you risk will be better managed.
For hedging, I generally use spreads.. you can find a lot about that in my other thread - LOW RISK....

Happy Trading

The reason, I feel buyers go for OTM, that to far OTM is the same as people choosing mutual funds with lower NAV except that options are a completely different ball game. We think that cheaper is better. You can get away doing that with stocks and MF's not options. Reasons are completely psychological/lack of understanding. With options theory has no substitute. Unfortunately I know all about it 'cause I used to do the same thing. :lol:

Anyone interested in trading options should read up as much as possible. It really helps.

 

[findvikas]

Unfortunately I know all about it 'cause I used to do the same thing. :lol: That makes me feel comfortable

Anyone interested in trading options should read up as much as possible. It really helps. - any suggestions? articles/books

(10 chars complaint)

 

[lazytrader]

:rofl::rofl:

It is not that funny. As I have already mentioned vikas doesn't have enough margin to sell options he can only buy. So I want to know if smbhai is bullish or bearish.

 

[findvikas]

Markets struggling to move up, but Suzy made a new day's low in last few minutes... signs of tiredness/profit booking?