iCharts Discussions

[Alchemist]

BNF closed at 19502 today (99 points down from yesterday) and BNF spot closed at 19395

Lets see what it did to my positions

Open positions of current trade
BNF Future short at 19360, LTP 19502 (142 point M2M loss)
BNF 19500 PE (27OCT) sold at 300, LTP 309 ( 9 points M2M loss)
BNF19300 PE (27OCT) sold at 189, LTP 230 (41 point M2M loss)
BNF 19000 PE (27OCT) sold at 162, LTP 148 (14 point M2M profit)

Closed positions P&L already booked in current trade
Sep BNF future profit booked 463 points
19600 CE profit booked 50 points.
BNF 18500 PE (27OCT) booked 38 points profit

If I was to close all positions today , my P&L will be:

463+50+38-142-9-41+14 = 363 points profit

So from 311 points profit yesterday, my current trade profit is 363 points. Till the point profit is growing, I will keep holding the position.

If BNF continues to fall further and makes 19300 PE ITM as well, I will be forced to make some adjustment. You will see that when 19300 on spot is broken.

Cheers
SH

[Alchemist]

BNF closed at 19494 today (8 points down from yesterday) and BNF spot closed at 19400

Lets see what it did to my positions

Open positions of current trade
BNF Future short at 19360, LTP 19494 (136 point M2M loss)
BNF 19500 PE (27OCT) sold at 300, LTP 304 (4 points M2M loss)
BNF19300 PE (27OCT) sold at 189, LTP 227 (38 point M2M loss)
BNF 19000 PE (27OCT) sold at 162, LTP 143 (19 point M2M profit)

Closed positions P&L already booked in current trade
Sep BNF future profit booked 463 points
19600 CE profit booked 50 points.
BNF 18500 PE (27OCT) booked 38 points profit

If I was to close all positions today , my P&L will be:

463+50+38-136-4-38+19 = 392 points profit

So from 363 points profit yesterday, my current trade profit is 392 points. Till the point profit is growing, I will keep holding the position.

If BNF continues to fall further and makes 19300 PE ITM as well, I will be forced to make some adjustment. You will see that when 19300 on spot is broken.

Cheers
SH

[Alchemist]

I am exiting and booking profits now at 12.28 PM in all position as below ...


positions closed today
BNF Future short at 19360, exited at 19487 (127 point loss)
BNF 19500 PE (27OCT) sold at 300, exited at 285 (15 points profit)
BNF19300 PE (27OCT) sold at 189, LTP 203 (14 point loss)
BNF 19000 PE (27OCT) sold at 162, LTP 122 (40 point profit)

Closed positions P&L already booked in current trade
Sep BNF future profit booked 463 points
19600 CE profit booked 50 points.
BNF 18500 PE (27OCT) booked 38 points profit

Net Profit in October Trade

463+50+38-127 +15-14+40 = 465 points profit


Cheers
SH

[amitagg]

Keenly watching next one . Liked it.

Just one question . What was the base or technical argument for shorting he futures on "at particular day" in first place . Meaning the entry directonal view of BNF was formed on basis of overall judgement ( not to be disclosed?) or something else.

One of the followers would have done much better to have it plotted on excel to study the movement of options day to day.

Also the "hedge" on sold options ( in a range bound market) played very nicely and nice adjustments were done each day with regular posts

Thanks

[paa]

Please explain the reason of closing the position completely!

Regards

[Alchemist]

Positions exited as :

1) Mkts have been rangebound for last 2 weeks with profits growing everyday. This happens just before market expands either way which is bad for option sellers and India Vix shoots up increasing option prices at every strike price.

2) 2 days holidays in markets which means Thursday maybe a big gap up or down day based on what happens in global mkts over the next two days.

3) 400+ points profit is enough in the first 2 weeks of the month. I would open fresh trades once market expansion comes.

Amitagg - Direction doesn't matter much initially till the time one can adjust positions as the mkts moves. I could have very well bought BNF instead and sold 19500C, 20000C and 20500 C and still would have made profits.

Cheers
SH

[Alchemist]

As expected, the price expansion came in BNF today, had I held my positions until today I would have lost around 150 points as put prices rocketed up 150 points more than what BNF future would have earned in shorts.

Will look to open fresh position next week

Cheers
SH

[Alchemist]

Sorry...edited to Oct puts as realised Nov puts are not liquid yet.

Opening fresh position today.

Sold BNF (Oct series) at 19013

Sold 18800 PE (Oct) at 151

Sold 18500 PE (Oct) at 85

Sold 18200 PE (Oct) at 48


Cheers
SH

[amitagg]

Delta was 0.6 yesterday of calls and negative delta 0.4 with BNF combined
Sold calls gained 284-232=52
BNF lost 92
Pls update
Why delta not been taken 1 by increasing short (put) position ?

[Alchemist]

Because I have a bearish bias and I expect this 0.6 delta to become 1 soon when BNF falls and 18800 put becomes ITM. It is difficult to keep Delta around 1 specially when your outlook is bearish as sometimes mkts fall too fast intraday.


So yes I am carrying 0.4 bearish delta which means my positions will lose only 40 points even if BNF goes up 100 points from here.

Cheers
SH

[Alchemist]

Making one adjustment today

Booking 18800 PE at 87 and selling 19000 PE (Nov series) instead at 299.

Current open position

Sold BNF (Oct series) at 19013

Sold 19000 PE (Nov) at 299
Sold 18500 PE (Oct) at 85
Sold 18200 PE (Oct) at 48


P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit

Cheers
SH

[Alchemist]

deleted as duplicate post

[Alchemist]

BNF has become mildly bullish on my charts now for time being so time to hedge by selling ITM puts.

One adjustment made this morning, booked 18500 & 18200 puts at 18 and 9 respectively.

Sold 19500 PE at 226 and 19800 PE at 408 instead. revised positions below now.

Current open position

Sold BNF (Oct series) at 19013
Sold 19000 PE (Nov) at 299
Sold 19500 PE (Oct) at 226
Sold 19800 PE (Oct) at 408


P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit
Sold 18500 PE (Oct) at 85 booked at 18 = 67 points profit
Sold 18200 PE (Oct) at 48 booked at 9 = 39 points profit

Position is running in loss currently and this could be a great example to demonstrate how to reduce loss by theta benefit.

Cheers
SH

[AMBY]

Thanks.

[amitagg]

yes strategy is good and working in limiting losses and capturing gains as well....that's all is required irrespective of profit or loss of any trade