Not much significance due to the range trading, but seems some action expected ahead #nifty fut
If we start trading above 11495, we might attempt 11535. But again, volumes essential. So far no volume support for a bull or a bear move
Now stops to 11494 ( I entered at 11496)
Out of 50% at 10516, rest Sl to 10504
Volume continues to come in, Sl to 11511
Sl to 11519
Sl trigg, trade closed
btw, the trade has a SL of 11483 at the time of entry. Stops started trailing even before I could update that ;) See the TrailLong value. So a 1:2 RR trade profit booked
A quick scalp in BN options, market is now throwing up opportunities
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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 .