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:
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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