Disclaimer: I will be sharing my findings of expected moves in the stocks. We will understand and learn from our technical analysis. This page is dedicated to learning and accumulating the knowledge, no suggestion to trade.
Sole purpose of publishing and continuously updating this post would be to share my testings of different strategies and analysis that I see online, many a times when we test and practice new ideas keep on emerging on what if we try this or that. How would the option selling strategy works in a particular scenario or would it be safe to opt option buying. So there are many things that I will keep on sharing on this page.
Just bookmark this page and Stay tuned for regular updates while we perform R & D on stock markets and its different instruments of making money.
Bear Put Spread and Adjustments
I’ve pulled a Regression Channel on Bank Nifty Chart and As per trend there is a probability of market to reverse. So how do I trade from here to capture this opportunity being a trader.
Timeframe: Daily Chart
Trade taken at the morning of this green candle made outside Regression Channel.
Since my view is bearish, one would like to buy Put or Sell future as per the Capital.
Since Timeframe I am taking into consideration is of Daily Timeframe, so I bought the Monthly Expiry.
I’ve bought the Put and managed my risk by selling another put placed at difference of 1000 points between both strikes.
First Adjustment done
2nd Adjustment
Strategy Position after 2nd Adjustment
3rd Adjustment
Closed this Trade with Approx. 5k Loss while keeping in view the Initial target of Loss when strategy was deployed.
Learnings from this trade: If Market makes you to adjust your position in one day then just take Loss and exit from the strategy
Calendar Spread with Neutral Delta and Theta
Delta is Neutral, Theta is also minimized to avoid loss due to time decay, Only VEGA is the player in this strategy
Markets opened with above 1% Gap Down and strategy was trading in red
This is very rare to see while Nifty Bank Index is almost 1 % UP (Green) and Nifty Index is almost half % Down (Red)
Feb. 10th 2023: Intraday Option Selling in Bank Nifty Index
Testing the Intraday Option Selling on Bank Nifty Index
Feb. 3rd 2023: Iron Fly with Calendar Spread in Bank Nifty Index
Going to Test New Strategy on Bank Nifty – Pay Off Graph Would not make much sense since it would perform calculation as per month expiry time.
Let me explain to you what I am trying to do here:
So I’ve sold the weekly Straddle (3 days left) and Bought Monthly Wings at Breakeven points on both end. I might have to perform multiple adjustments in this trade.
11k ++ cost is covered from weekly Straddle Sell. Carried the Monthly Strangle to gain on Delta as expected one side swing to either side after stretched sideways move of the market.
Date 13-Sept-2022, Snapshot Current position of the Strategy
Testing New Strategy on NIFTY INDEX —
(Monthly Options Selling)
Position opened on Sept. 5th, 2022 while Index was trading around 17600 -700 levels.
Despite of such heavy correction in the last 1-2 week , this strategy ended in Green
Snapshot: 29-SEpt (Monthly Expiry Day)
Asian Paint on Radar for Short Opportunity: Expect some correction in the Price after this far streteched Rally.
RSI in Over Bought Zone too. No Wonder if the price still makes a new ATH.
Taking Hedged Short position for Next Month Contract. Let’s wait and watch
Hedged Short position for Next Month Contract
Following is a Ratio Chart (Asian Paints / Crude Oil ) – RSI Seems flattening on the Ratio Chart
Here is a Strategy with a minimum Risk and Maximum Reward – if it turns out in our favor.
OTM PUT Bought for Next Month Expiry
Dated: 19-Aug-2022 —-Asian Paint has not performed as expected – HEDGED position is still GREEN
Date: 08/22/2022 — From Neutral position to 10k Profit
Date: 02/Sept/2022 — Price has reversed back where short was taken – Position holding 11k Profit
Date: 07/Sept/2022 — So far strategy in green — 14k++ profit
Asian Paints Chart Study after 6 months, last chart study was shared on 8 Aug. 2022 while price stood around 3475 level
PVR currently trading at 2025 on 07/27/2002 – Stock price may shoot to 2100 levels and it should be a good opportunity to expect correction in the price from those levels.
A Bear Put Option Strategy with Risk & Reward 1:11
So the PVR marked 2150 charts today, here’s a strategy to play the contra trade.
PVR Fut 1 Lot Short and 1 Lot PE Short
Both positions in Green So Far (Date 05-Aug-2022)
Dated 19/Aug/2022
Approx. 40k Profit without any adjustment – It would have doubled if timely adjustments were to sell further strike PUTs along with break down of price.
PVR Snapshot: 16-Sept-2022 – almost after 2 month from last snapshot
Stock price did inflate to the 2200 level but yes everything falls back to its original value sooner or later. – So Retail traders must hedge their position since we never know how adverse the position can become in time.
Expecting LIC Housing Finance to correct from the high of current swing. Price is trading around 370 levels Timeline: Short & Positional
TESLA has corrected 70% from its Life Time High and looks like a good opportunity to start accumulation of this stock.
Zscaler
Zscaler – Cyber Security Company
Fibonacci Retracement of 78.60% is done on the stock and another good candidate for accumulation.
- Bear Put Spread strategy
- Bank Nifty chart analysis
- Regression Channel trading
- Trading on daily timeframe
- Monthly expiry options trading
- Managing risk in options trading
- Adjusting positions in stock trading
- Loss management in trading
- Option selling vs buying strategies
- Making money in stock market through R&D
- Technical analysis for stock trading
- Learning from trading mistakes
- Continuous improvement in stock trading strategies
- Accumulating knowledge in stock trading
- Stock market instruments for making money