11% gain in one day!

bough nifty PE at 84.5 and sold it at 98.5. That was pure Intraday, can't take the risk of holding a put option overnight with falling crude, can't take the risk of holding a call overnight when its raining bad news about bad housing loans and talks of recession.

that was roughly 11% gain on today's investment after deduction of brokerage and taxes. It is possible that nifty will fall further. But i was so hungry for some profit booking that i decided to exit. The good thing about this trade was it was executed as I had planned and imagined yesterday.

But I have made a huge loss before I started this blog. Huge, means roughly around 35 to 40% in two or three days! that is the principal reason why i have started this blog. I hope that writing me force me to look at things more carefully and also help me evolve a strategy of options trading. I will also keep posting about losses i make, and hopefully that will help me correct my strategies. Definitely options trading (especially speculative trading) will require much more discipline. Looking regularly at numbers and data requires more discipline than intelligence or smartness.

From today onwards, i have decided to look at implied volatility, a parameter which I have been ignoring while buying options. More later in my next post on put call outlook.

Aug 12, 2008

Custom Search

  © 2008 http://niftyprediction.blogspot.com