Today was a good expiry day. I was able to make 1lak 80 thousand profit. I would say today was a bit difficult day. Trading was not as simple as I expected. The premiums were high due to immense volatility.
Yesterday nifty made a wonderful move closing above 200 DMA. I was expecting a follow-through rally today as well. Though SGX was showing that we would open low, I was expecting that the markets would recover in the second half as the international markets were not performing that badly.
When markets opened with the gap down, I took positions by selling PE. In order to hedge that, I did buy some puts. In other words, I executed put spread. At 10AM, the markets started going up and I thought that my view was working. I added more to the positions by buying more puts and selling more puts. But luckily, I had executed call spreads in nifty and put spread in banknifty. But things changed rapidly at 11AM. Markets started to fall at a rapid pace. By 11:30 markets fell by 50 points in nifty and banknifty fell by 200 points. Now my put spreads were in bit danger. Now I realised that the view which I was having was not right. So I exited some of the critical position in minor loss. I added counter trades to hedge the positions which were in loss.
I then took positions on the bearish side. I started selling more calls. But things started to change again at 12. Markets started to move upwards. Now again I was in a dilemma. But now I realised that markets were ready to trap all who are long and also short. I had experienced these kind of markets. So in these, the best strategy would be to do long straddle. I closed more positions. Some were in minor loss and some were in profit. I went ATM long straddle. Banknifty started falling more and my put gave me wonderful profit. I then closed the CE which I was long. Till 1PM, my volumes were low only as I was expecting Indusind results to come. Since this was the first bank result, you never know what would happen. But the results came after 2. Indusind started taking the downward path after the results. It fell 5% after the results came. Now I was sure that recovery was not possilble. So I also sold Indusind futures in huge quantity when it fell close to 3%. I got a wonderful profit when it fell further. Also, the puts which I had bought also gave wonderful profit. Finally I ended the day with a profit of 1lak 80 thousand.
Comments
Post a Comment