Plan for today : 1. If WIPRO moves up by 2.75 from opening prices, sqoff the sold 340 calls and add naked positions on 330 calls 2. Buy puts on PNB and Ashok Leyland if there is a small bounce in these two ( allocating 1R total on naked puts)
Sqedoff the 340 puts at 2.40. Strong opening, running the 330 calls naked now
Will add positions > 329.5
Bought PNB 80 strike PUT at 2.50
Bought Ashok Leyland 125 PUt at 3
Bought 1 contract of the PNB and AshokLeyland PUTS, total allocation 1R
WIPRO trade running at 1R risk
Total risk = 2R ( 1R long, 1R short)
btw, both the Ashok Leyland and PNB puts are #positional trades. Do not follow me if you are not ready to lose this whole amount
WIPRO 330 calls now hard SL at Rs.4
Both the PNB and AshokLeyland puts are in profit. :)
Out of AshokLeyland put at 3.90. Too fast for my liking, will enter if I get a rebound
btw, re entered again at 3.15 in the😜 AshokLeyland put
Again sqedoff the AshokLeyland put at 3.90 😂
Booked PNB put at 3.50
Though AshokLeyland put back at same price of 3.10, not entering now. Third time on the same trade is always unlucky for me 😜
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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 .