reason for scalp, self explanatory. RSI on the bottom pane
SL to 145
Sqoff target at 120 or lower, Sl 145
Options have very fast depreciation as they approach expiry. On BN weekly options, the speed of depreciation accelerates from Tuesday onwards reaching the highest speed on Thursday. This thursday being a holiday, the depreciation today will pick up speed.
Sl trigegred, trade closed
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This is where the first short was, then shorted more on the way down. Due to high vol, starting with 1 lot and then punching volumes if the trade goes in my favour. Else would have been out with SL on a single contract . High VIX --> different strategies
Seeing quite a few msgs on twitter how one bought stocks at 2008 high , stocks went down 80% and then they sold at 5x of buying price . Funny no one bought DLF , Unitech, Suzlon, Rcom etc . Don't jump into buy on this survivorship bias based stories
The amount of mutual fund money which flowed into the bourses based upon the #MutualFundsSahiHai slogan lifted all stocks . Such a liquidity flow might not be repeated in the future if the MFs now take a big hit .
If you want to buy for long term as an investor , wait for the PE ratios to drop further . Sharing a study which I did long ago , but the principles still hold true
This is the crux of all complicated option selling strategies . Nothing so simple can work across all market conditions .
This model has a problem . It's assumed that IV will mean revert , as it has done since 2015 . But what if the volatility regime changes ? IV is not a bounded indicator which has an upper and a lower ceiling. What if IV continues to go up ?
Volatility has 3 characteristics . Persistency , cyclicity and mean reversion .