Nifty
In my previous post, it was suggested that I would prefer not to Short Nifty at current levels of 17280, but I would not prefer to buy Call options as well.
For most part of the last 3 days, it traded in the red gap zone channel, virtually eating away premium of all the Options of 16 Dec expiry.
Our strategy:
In the previous post, 2 levels for Nifty were highlighted in bold
-17222 / 17180
We planned our trade taking in to consideration that these 2 levels could be seen and accordingly
What we had done : On 14 Dec we shorted 30 Dec expiry 16800 Put option at 88 with the understanding that Nifty might come down to 17180 odd levels. We were prepared to see that level provided that level is being held.
On 15th Dec Nifty closed at 17221.40 and Nifty 30 Dec 16800 Put Option closed at 87.60 (Nifty was down 60 points, yet Option was still at our Sell Price)
On 16 Dec, Nifty made a low of 17184 (just 4 points adrift of another level highlighted 17180 levels, yet 16800 Put option managed to make a high of just 77 - again keeping us in profit).
The option price traded between 50 and 60 yesterday and even today in the morning.
Now with the advantage of hindsight any one can claim that, the strategy worked well and gave ample of opportunity to book profits at the best price of the day. 😉
That's the easy part... But I'm not going to focus on that, as trading is a different ball game altogether. In my trading style, I prefer to wait for either my target being hit or if market breaches important levels to tell me that the view has been invalidated.
Today when Nifty eventually broke below 17180 odd levels and was sustaining below that, it was an indication from market, that the view has been invalidated and we exited when Nifty was around 17150. Yeah that's the truth. But Guess the Option price... it was still around 80. Managed to come out unharmed with small profit, despite Nifty being 130 points down against the view. Again there are no regrets for the ifs and buts. It's part and parcel of the trade. I accept that part and move on...
Technical Analysis helped us identify important levels and our trading strategy helped us to manage the situation.
In any relationship, some sort of flexibility and freedom goes a long way to keep the relation healthy....
Use the same logic in trading too. Don't focus on making profits rather Focus on managing situations...
If you can manage your situation well, you increase your chances drastically to stay profitable
Aim for the best.... Plan for the worst...
Trust the logic makes sense ...!!! 🙂
Best wishes & happy trading...!!!
Like & Follow
In my previous post, it was suggested that I would prefer not to Short Nifty at current levels of 17280, but I would not prefer to buy Call options as well.
For most part of the last 3 days, it traded in the red gap zone channel, virtually eating away premium of all the Options of 16 Dec expiry.
Our strategy:
In the previous post, 2 levels for Nifty were highlighted in bold
-17222 / 17180
We planned our trade taking in to consideration that these 2 levels could be seen and accordingly
What we had done : On 14 Dec we shorted 30 Dec expiry 16800 Put option at 88 with the understanding that Nifty might come down to 17180 odd levels. We were prepared to see that level provided that level is being held.
On 15th Dec Nifty closed at 17221.40 and Nifty 30 Dec 16800 Put Option closed at 87.60 (Nifty was down 60 points, yet Option was still at our Sell Price)
On 16 Dec, Nifty made a low of 17184 (just 4 points adrift of another level highlighted 17180 levels, yet 16800 Put option managed to make a high of just 77 - again keeping us in profit).
The option price traded between 50 and 60 yesterday and even today in the morning.
Now with the advantage of hindsight any one can claim that, the strategy worked well and gave ample of opportunity to book profits at the best price of the day. 😉
That's the easy part... But I'm not going to focus on that, as trading is a different ball game altogether. In my trading style, I prefer to wait for either my target being hit or if market breaches important levels to tell me that the view has been invalidated.
Today when Nifty eventually broke below 17180 odd levels and was sustaining below that, it was an indication from market, that the view has been invalidated and we exited when Nifty was around 17150. Yeah that's the truth. But Guess the Option price... it was still around 80. Managed to come out unharmed with small profit, despite Nifty being 130 points down against the view. Again there are no regrets for the ifs and buts. It's part and parcel of the trade. I accept that part and move on...
Technical Analysis helped us identify important levels and our trading strategy helped us to manage the situation.
In any relationship, some sort of flexibility and freedom goes a long way to keep the relation healthy....
Use the same logic in trading too. Don't focus on making profits rather Focus on managing situations...
If you can manage your situation well, you increase your chances drastically to stay profitable
Aim for the best.... Plan for the worst...
Trust the logic makes sense ...!!! 🙂
Best wishes & happy trading...!!!
Like & Follow
