Thursday 18 October 2018

My stock trading performance in last 4 weeks and plan ahead

I completed my first month stock trading as an independent trader. 

Good news is I made profit.I started this challenge with 200K INR with a target to earn 4000 INR post all operational expenses.

My current equity is 223243 

This is indeed a motivating performance as I achieved in a  most challenging time while INR is depreciating fast, crude price is moving north, US-China trade war is getting more intense, possible US sanction on India for dealing with Russia for arms, growing political unrest in India.

My plan for next month

1. BNF option trading with daily target 1000

2. Using Jeep option strategy to earn  2% per month.

3. Building a portfolio with top 10 companies on Nifty and accumulating 5 high dividend yielding stocks.

My trade rules

Banknifty is very volatile now. I will short OTM call and put with almost equal premium.
'
Entry rule -  Based on current option chain, my plan is to short 24000 PE and 25900 CE. I will get around 120 Rs premium.

Exit rule:

1. Will exit if premium is is more than 110% in any side. Will put tight SL on otherside.
2.  Will exit if combo gets 20% of total premium received.
3. Will exit at 3 PM

Total margin required : 130000 at my brokers platform

Total brokerage           : 100

Premium received       : 4340

Target profit                : 700 to 1000

This is a risky strategy so SL need to be placed to protect capital.


Nifty :  Will deploy vertical put spread

 My current  position is with multiple lots

Buy 9600 PE of November
Sell 10200 PE of November
Buy 10000 PE o November

current profit 6503

Current Greek of the strategy :
Delta  -14
Theata  -411
Gamma   .008
Vega   2091

This strategy will do well for quick downward movement.

Performance of the strategy






Downward adjustment :

10400  , close one short put and sell a new put at 9800
at 10300 , close 50% of 10200 short put and add at 9800
At 10200 , will buy 9500 put

Upside adjustment 

will buy one lot NF future once NS  moves above 10480 and stays there for 15 min


Nifty  is in clear downtrend as it is forming lower highs and lower lows and volatility will remain high.

Stocks for 19th Oct

Short term swing trading:

  • TechM   
  • Adaniport
  • Torrentpower
  • KPIT
Positional 

Will accumulate HDFC, HDFC bank, India bull housing finance, Infosys, TCS  and Reliance industry for fall of 1 ATR


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