My Daily Options Trading Diary

[findvikas]

Vikas, nice that you have framed a strategy. I am sure it will be fine tuned in course of time by you with sufficient trade experience in options. But while taking S/R for buying calls or options, you have to take into account the trend as well. If the trend is up and you have bought put at resistance, next day there is a break out the put loses its value.

Please also incorporate a study of MACD, RSI & stochastic in your strategy, so that you can have an idea of the direction of the trend.

Since you don't propose to hedge, it will be better to exit on a daily basis even if you get 20-30% without waiting for a 50% return. Keeping naked overnight positions is risky.

I also do something similar though I have not properly codified it. I wish you good luck in this endeavour.

Thanks!!!

I forgot to mention 50% exit strategy is only for overnight positions and I DO check MACD,RSI, CCI & Slow Stoch along with weekly & 60minute chart (3,13,39 EMA) to decide my position. I run scan to find counters with possible 5-10% weekly return and get into ITM call options, vice versa for Puts.

I know risks are more in options, like what if there is no buyer when call goes out of money... but I am aware what max I am losing on this BET and not investment

Thanks once again and I would expect everyone to guide me with their past experience.

 

[findvikas]

Vikas, mayavi99 is right. I am giving my 2 cents.
While selecting the stock, you should use ADX to know that the stock is range bound or in strong trend.
If the stock is in range bound, then you need to use oscilator ( RSI,Stoch etc) to pinpoint your entry and exit.
If the stock is in strong upward/downward trend then you need to buy Call/Put.
This technical Indicators, will improve your profitability.
Sagar

Thanks Sagar.. I am not yet using ADX otherwise I am using all other tech. tools to predefine my entry/exits.. thanks again!

 

[sagar55]

Thanks Sagar.. I am not yet using ADX otherwise I am using all other tech. tools to predefine my entry/exits.. thanks again!

In strong trend (upward/downward), you could use EMA of different period.
Although, these are lagging indicators, but are very useful in entry/exit while one cross over another.
You could place yr Stop Loss at just below the larger period EMA in upward trend and just above the larger period EMA.

Sagar

 

[findvikas]

Thanks thats what I have been doing for quite some time to decide my intraday entry exits.

 

[findvikas]

Here are my today's holdings... I will share my Options Holdings daily at the EOD. Assuming I started from 1st September.

Scrip - Strike - Buy Price - LTP - Quantity (in stocks & not in lots)
==================================================
SUZLON - 100CA - 5.3 - 7.7 - 12000
NIFTY - 5000CE - 49 - 49.15 - 200
ESSAROIL - 175CA - 3 - 3 - 1412

Total cost of holding = 77636
Current Value of holding = 106466

Unrealized Profit/Loss for the month = 28830

(I am not accounting any brokerage to keep it simple.)

 

[findvikas]

Thanks Murtaza bhai... bahut time baad? Howz everything?

 

[MurAtt]

Yaa all is fine but not getting much time though ...
But still here at TJ and following ...

You are doing a very nice job. Do update AND DO NOT FORGET that sometimes even though you may have to book some loss (which we all pray that time may never come) do jot it down here.

Eventually it will help you to analyze both your winnings and your loosing trades.
Also it will help give some sort of indication to newbies (to trading as well as to options) to see the clearer picture that it is not always WIN WIN.

Also keep in mind to take some profits off the table when they have run coz I've leaned the hard way - specially in options, I've had Great winning trades turn to loosing ones!!!
Liek Suzlon u hv 4 lots, book 2 at some profit so that the balance 2 are averaged down and you have bigger margin to hold in case of a small but sharp dip coz options tend to loose very fast and with a high beta stock like Suzy, it too could fall fast and furiously with the markets ...

 

[kirtibas]

Yaa all is fine but not getting much time though ...
But still here at TJ and following ...

You are doing a very nice job. Do update AND DO NOT FORGET that sometimes even though you may have to book some loss (which we all pray that time may never come) do jot it down here.

Eventually it will help you to analyze both your winnings and your loosing trades.
Also it will help give some sort of indication to newbies (to trading as well as to options) to see the clearer picture that it is not always WIN WIN.

Also keep in mind to take some profits off the table when they have run coz I've leaned the hard way - specially in options, I've had Great winning trades turn to loosing ones!!!
Liek Suzlon u hv 4 lots, book 2 at some profit so that the balance 2 are averaged down and you have bigger margin to hold in case of a small but sharp dip coz options tend to loose very fast and with a high beta stock like Suzy, it too could fall fast and furiously with the markets ...

bhai need ur yahoo msng / email id..thanks

 

[MurAtt]

email is same as tj id with gmail as service provider.
pls give tks so i know u v read the post and i will remove it then.

 

[turjobhatto]

I want to buy 1 nifty call to day .Please tell me how I have to fill the buy form.