Expiry trade highlights 5th dec

Yesterday's expiry was a little critical and a little tricky. So I thought that I will share the trading highlights in a blog.
Yesterday was an event day and in the morning before market opened I thought of not trading till the policy is out. It was decided that the policy would be out around 11:30 - 12. I was seeing the market, especially banknifty. I started selling far OTM options in small quantities. To hedge these I bought ITM options so that I can be safe when knee jerk reaction happens. But there was no movement in the index till 11AM. By this time, the option premium was increasing for even slight movement of banknifty and I had a MTM loss of 40,000. I had kept a mental stop loss of 50000 and thought I will close positions if -50k reached. I was also feeling guilty for taking trades before the policy. Sometimes we think correctly but we do not follow what we think. This is because we are greedy. We need to overcome this and unless we do that we cannot be successful. This is another lesson which was learnt yesterday. Rule 1: plan the trade. Rule 2: stick to the plan.
I was sure that the policy would create tsunami as the market was very silent till 11:15 on an expiry day but which way I was not sure. I had even put a post on twitter/facebook that we can expect some boom boom in some time. This was the time I executed 32000 long straddle in huge volumes(almost 300 lots). The policy came out and bankifty fell 300 points in 2 minutes. My 32000 straddle was in wonderful profit and I closed the trade immediately as IV crush would take place after the event. Now I waited for the market to react further. I expected the market to fall more. So I took positions on the short side on small volumes, but that did not happen. The market started recovering and banknifty recovered 300 points from its low. As it recovered, my MTM on my open positions were in danger. So I started selling ITM options to cover them. These were some risky trades. My overall position status was in green when bankifty recovered around 300 points. I closed all the positions at that time. It looked like that we would close in the green. But no, there was more turbulences now. Banknifty started reversing at 1:30 and by 3PM it had lost 300 points. As banknifty fell and I got a signal on my charts, I sold futures and OTM and ITM call options.Banknifty fell as expected and closed near the days low and I was able to end the day with a profit.