Picking up nickels in front of steamroller!!
- Thread starter jvblogger
- Start date
- Tags naked option selling option selling option writing
Hi , thanks everyone keeping the thread alive (may be just by curiosity of my sudden disappearance).
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Hi , thanks everyone keeping the thread alive (may be just by curiosity of my sudden disappearance).
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
most of us are sailing in the same boat...
by sharing your thoughts and strategies you are helping others, and hopefully people like me would learn.
thanks again.
keep posting.
Hi , thanks everyone keeping the thread alive (may be just by curiosity of my sudden disappearance).
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
hey buddy gnd to see u back
lets rock the party this time
me to holding 4 positions but in jan series around of 4100,4000,4200,4300
with 4 positions of 4400 put in current series to hedge the position its now .8 only
u know just incase
Hi , thanks everyone keeping the thread alive (may be just by curiosity of my sudden disappearance).
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
5600 CE 19.6 (Entry Date??) 0.6 (??)
Will you please highlight?
Thanks
Hi , thanks everyone keeping the thread alive (may be just by curiosity of my sudden disappearance).
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Definitely enough I made huge loss and the exact figure I knew recently while filing my IT return for AY 2010-2011. The net loss (of option writing) was around 36k+ (total profit - total loss). I hard earned around 1.6 lacs during previous year and made loss of 2 lacs.
The initial success (and the profit) made me somewhat over-confident and felt overpowered over the collective wisdom of the market. So, last year after the hug loss I was shattered and I had left the option-writing for few months while I licked my wounds.
The loss was on account not following the strategy as promised, more accurately the exit strategy. The flaw was with my attitude being over-confident. I kept my position open till it ate my most historical profits and moreover I opened some more positions to compensate the loss which simply added more salt to the injury.
However, sometime after recovering myself for second inning I re-analyzed the strategy minutely and came to same conclusion that there is nothing wrong with the strategy but fault was within me.
Therefore, I have started writing option again some months ago but I did not discussed or shared it on the thread fearing the attacks of "I-told-you-so"
But some months ago I was contacted by rammmeo through PM and we discussed through PM about existing trades and so on till September'11..
I have position open right now ..
NIFTY 24-Nov-11 5600 CE 19.6 0.6
NIFTY 24-Nov-11 4300 PE 19.5 0.5
NIFTY 29-Dec-11 5800 CE 18.4 2.9
NIFTY 29-Dec-11 4600 PE 19.7 42 (squared off at 42)
I will be glad if interested members like Maxx,AW10,rammmeo, mukeshpatil etc. join the discussion and share their trades , tips and experiences
Yes, I made loss during last year's sudden upward move and I am thankful for that. Because the sudden huge upmove also increased my portfolio value. Particularly I was lucky enough to have Parekh Aluminex (PARAL) in my portfolio at the average rate of Rs.70 (1000 shares) because the script surprisingly moved to the level of around Rs. 600 and I was re compensated.
Infact high volatility cause increase in option premium , sometime at ridicule price. So, it will allow option writer to deeper OTM PE. For example considering the present volatility December'11 4300 PE fetches premium of Rs.19.5 and on Call side December'11 5400 CE fetches 19.6.
If volatility was on lower side say around 16-18 we would have to sell 4600PE to fetch somewhat same amount of premium.
If you will notice my present open position of November'11 4300 PE earned me 19.6 and 5600CE earned me Rs.19.5 that is because of high volatility. The stability in market (except last week or so) reduced the premium to nearly zero.
However at the same time my December'4600 which I had sold for Rs.19.7 (because of lower volatility during the stable period) quickly run into stop-loss point and exceeded it.
So, high volatility is ripe time to reap high premium , which would soon reduced as market becomes stable after initial shock and fear.
However, please keep in mind that these things are EASIER SAID THEN DONE. So take my explanation with pinch of salt and above narration is for just example purpose and I have not studied them closely (but considering them for Monday trade
On conservative side you can consider deeper OTM like 4200PE and 5500CE at Rs.12-13.
Infact high volatility cause increase in option premium , sometime at ridicule price. So, it will allow option writer to deeper OTM PE. For example considering the present volatility December'11 4300 PE fetches premium of Rs.19.5 and on Call side December'11 5400 CE fetches 19.6.
If volatility was on lower side say around 16-18 we would have to sell 4600PE to fetch somewhat same amount of premium.
If you will notice my present open position of November'11 4300 PE earned me 19.6 and 5600CE earned me Rs.19.5 that is because of high volatility. The stability in market (except last week or so) reduced the premium to nearly zero.
However at the same time my December'4600 which I had sold for Rs.19.7 (because of lower volatility during the stable period) quickly run into stop-loss point and exceeded it.
So, high volatility is ripe time to reap high premium , which would soon reduced as market becomes stable after initial shock and fear.
However, please keep in mind that these things are EASIER SAID THEN DONE. So take my explanation with pinch of salt and above narration is for just example purpose and I have not studied them closely (but considering them for Monday trade
On conservative side you can consider deeper OTM like 4200PE and 5500CE at Rs.12-13.
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