Well I was busy with adjusting my stocks today morning, I felt so powerful I forgot about other things I was so worried about yesterday. I had taken leave today and all I did today was watch the markets, sit in my room.
I enjoy watching markets and definitely taking the trades. Today reminded me of many days where I used to sit infront of lap through out the day and feel so bad at the end of day!
So yeah lets look at how markets are doing after hitting all time highs
After hitting all time highs in July markets have been cooling off for a bit. I should have entered so short positions with ATH as stop loss may be next time. My positions are in dec series options I have been rolling over calls and Puts since 17k and the calls value have been going up tremendously and I had a huge loss. The values of puts wasn’t decreasing much and it didn’t have much premium to capture and I was scared to short ATM/ITM puts. I should have!
Now I slowly stopped shorting calls aggressively and started adding more hedges. I have 50 lots of 21000 DEC call at buy average of 166 so that position is worth 4.15 lakhs so crazy!! I entered 14 lots of 19K calls today so thats 7 lakhs in credit . My plan is to remove the call shorts as soon as nifty breaks the yellow
Today I thought nifty would break on the downside since it was being tested the third time. And I exited the put short positions waiting for the whole thing to fall but then 3rd July gap support was really strong and couldn’t be broken
I was madly readjusting the positions and did make some losses! but yeah it felt as if nifty would just break the support and fall since it didn’t bounce off quickly and was staying in the area. I think I need to take out the short term option selling and keep it minimal to maintain the theta.
So the strategy is to aggressively add dec shorts if it breaks the support and book profit when the yellow line breaks
If the support is not broken and it starts to go up , unwind call shorts when yellow trend line breaks!