Trading for Living -- Successfully Completed one year as Full Time Trader

[Suppa]

Maybe this question is not ideal for this thread and I don't know how to start a new thread.
Suppose I have a cash portfolio of Rs 5000000 and I want to start writing covered calls or cash puts. I own the stock and I am not worried if my call gets assigned as my cash portfolio would increase to more than my initial cash portfolio though I can't partake on further opportunities of profit. however my main concern is,if the covered call is not assigned and the stock price falls below and I get to keep the stock, but then my cash portfolio which includes the shares is worth less than initial cash portfolio . With the stock I get to rewrite a covered call and then the whole scenario repeats and it dwindles the cash portfolio even more.
How Can it be hedged to protect the portfolio?
Regarding to selling puts , do I get assigned to buy the stock? I won't mind buying the stock at relatively cheaper prices.

 

[govindheg]

Is anyone here using some app for strategy simulation?
Reason is, any strategy I contemplate and put to trade is becoming half cooked. Either I book profit too early or wait some extra time and lose whatever gains I had on hand. Today was a classic example
1) Yesterday created a debit spread:
Buy 26700 PE @ 178.95
Buy 26900 CE @ 32.95
After seeing the morning up/down movement closed the position at 195 / 20.
See the price movement later......26700 PE went beyond 330!

2) Straddle 26500 PE / CE created at around 1.30 was in the money to the extent of 20 pips, but ran till MIS cutoff and ended up losing 30 pips.

In the end net loss.

 

[VJAY]

Is anyone here using some app for strategy simulation?
Reason is, any strategy I contemplate and put to trade is becoming half cooked. Either I book profit too early or wait some extra time and lose whatever gains I had on hand. Today was a classic example
1) Yesterday created a debit spread:
Buy 26700 PE @ 178.95
Buy 26900 CE @ 32.95
After seeing the morning up/down movement closed the position at 195 / 20.
See the price movement later......26700 PE went beyond 330!

2) Straddle 26500 PE / CE created at around 1.30 was in the money to the extent of 20 pips, but ran till MIS cutoff and ended up losing 30 pips.

In the end net loss.

How its credit spread ?anyway better person to answer your querries are traders who really trading options ...amrutham OR any other option traders

 

[anildnr]

Is anyone here using some app for strategy simulation?
Reason is, any strategy I contemplate and put to trade is becoming half cooked. Either I book profit too early or wait some extra time and lose whatever gains I had on hand. Today was a classic example
1) Yesterday created a debit spread:
Buy 26700 PE @ 178.95
Buy 26900 CE @ 32.95
After seeing the morning up/down movement closed the position at 195 / 20.
See the price movement later......26700 PE went beyond 330!

2) Straddle 26500 PE / CE created at around 1.30 was in the money to the extent of 20 pips, but ran till MIS cutoff and ended up losing 30 pips.

In the end net loss.

Hi govind...first one is long strangle buying a ce n pe with diff strike prices. Anyway today's moment is one sided so don't worry about that. Suppose if it reverses from the time u exited..then?? So its ok try to avoid longs before expiry that too overnight carrying

2. It's common mistake mostof us do when we are in profit we expect more...that too as today is a volatile day ..make sure to take small small profits and enter into the positions again based on the bn spot

Ofcourse it's easy to say and everyone has their own weakness in trading and mine is to do over trading and minimising the profits ...trying to overcome that...

 

[govindheg]

Hi

How its credit spread ?anyway better person to answer your querries are traders who really trading options ...amrutham OR any other option traders

Hi
Sorry. Strangle or whatever it is called.

 

[govindheg]

Hi govind...first one is long strangle buying a ce n pe with diff strike prices. Anyway today's moment is one sided so don't worry about that. Suppose if it reverses from the time u exited..then?? So its ok try to avoid longs before expiry that too overnight carrying

2. It's common mistake mostof us do when we are in profit we expect more...that too as today is a volatile day ..make sure to take small small profits and enter into the positions again based on the bn spot

Ofcourse it's easy to say and everyone has their own weakness in trading and mine is to do over trading and minimising the profits ...trying to overcome that...

Thanks

 

[amrutham]

Entered into below BN expiry day trade.

BN Spot @ 26370

Buy BN 26400 PE 600 Qty @ 98
Sell BN 26300 PE 1200 Qty @ 56
Buy BN 26200 PE 600 Qty @ 25

Net Debit = 98+25 -112 = 11*600 = 6.6K

 

[anildnr]

Entered into below BN expiry day trade.

BN Spot @ 26370

Buy BN 26400 PE 600 Qty @ 98
Sell BN 26300 PE 1200 Qty @ 56
Buy BN 26200 PE 600 Qty @ 25

Net Debit = 98+25 -112 = 11*600 = 6.6K

In this ur view is bn won'tbreak 26300. Right?

 

[amrutham]

In this ur view is bn won'tbreak 26300. Right?

Thats right.

 

[Nilesh Khumkar]

Hi,Good morning everyone.
I am very new to Traderji and need some help on my trade.
I am hoping that Nifty July may show 10800 levels in First week of July.
Is accumulation is good aound 10600 levels with stoploss 10550 OR should buy 10800 calls ?