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  #11 (permalink)  
Old 02-07-2013, 11:03 AM
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Originally Posted by manoj agrawal View Post
Risk in Trade 1

150 x (5900 - 5859) + 150 x 79 = 18000.

Hey Manoj bro,
I was just curious to know how much profit potential do you see in this trade so that we can get an idea about Reward/Risk ratio in this trade-1 of yours.

Actually with my calculator i was trying to quantify the probability of profits, it is coming unfortunately below 0.3, what's your plan by the way? Actually time decay and implied volatility will be eating away your premium on calls from today onwards. Best of luck for your trade!
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  #12 (permalink)  
Old 03-07-2013, 11:28 AM
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Exited Trade 1

Bought 150 Nifty Future July @ 5786
Sold 150 Nifty Call 5900 July @ 51
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Old 03-07-2013, 11:37 AM
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Originally Posted by manoj agrawal View Post
Exited Trade 1

Bought 150 Nifty Future July @ 5786
Sold 150 Nifty Call 5900 July @ 51

Nice trade - keep it up.
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  #14 (permalink)  
Old 03-07-2013, 02:30 PM
manoj agrawal manoj agrawal is offline
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Trade 2.

Bought 1000 Nifty Call 6100 July @ 10
Sold 4750 Nifty Call 6300 July @ 2.10
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Old 03-07-2013, 02:35 PM
manoj agrawal manoj agrawal is offline
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Risk in Trade 2.

Premium Risk:

1000 x 10 - 4750 x 2.1 = - Rs 25.

Overnight 3% Gap Risk:

At present zero.
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Old 03-07-2013, 02:58 PM
MatSol MatSol is offline
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Originally Posted by manoj agrawal View Post
Trade 2.

Bought 1000 Nifty Call 6100 July @ 10
Sold 4750 Nifty Call 6300 July @ 2.10

How do you account for margin ? You are net short 3750 Nifty (which is 75 lots). Short selling options requires margin.

Considering a modest margin of Rs 15,000 per lot, you will require Rs 11,25,000 in margin to build up this position.

The margin requirement itself is more than your capital.
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Old 03-07-2013, 03:00 PM
manoj agrawal manoj agrawal is offline
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Sorry I just noticed that on retail terminal it require fund larger than 10lac for current size of trade 2.
So keeping everything same I reduce position size by half on each strike. Then it require a fund of apprx 8-8.5 lacs for trade 2.
Will update calculations later.
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Old 04-07-2013, 12:56 AM
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Correct construction of Trade 2: ( from post#14)

Bought 500 Nifty Call 6100 July @ 10
Sold 2400 Nifty Call 6300 July @ 2.10

Risk in Trade 2.

Premium Risk:

500 x 10 - 2400 x 2.1 = - Rs 40.

Overnight 3% Gap Risk:

At present zero.

Last edited by manoj agrawal; 04-07-2013 at 01:03 AM.
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Old 04-07-2013, 01:17 AM
manoj agrawal manoj agrawal is offline
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1)Dad: Well your 3 days of action says that, you are betting/gambling not trading. You didnt perform good on both these trade actions if you ask me.Say honestly do you feel so ?

1)Me: Strange, how can you say this conclusively in just so less time ? I just completed a positive trade and second has just began. I would like to know why you felt so about my actions.

2)Dad: I strongly feel that you have taken these trade with Hit-and-See view without a proper strategic plan. Well as per your wish i wont discuss why and how about your trades and methodology behind them but your actions are clear x-ray of your mentallity behind this which is not going to help you last so long in this survival. Without detailing every micro thing, i am hinting you some macro points for both trades.

Trade 1

a) You didn't waited for price to show its way neither at Entry nor at Exit. Had you shown some patience, then you would have got better price and better confirmation at both these points. Do you remember that Market don't turn at single price ?

b) You didn't considered any scale-in or scale-out, that could turn this trade a potentially large trade. Market is in process of proving your entry right, atleast there was room for scale-out if not add.

c) Your Adverse Excursion Time was way higher than Favorable Excursion Time. This hints that the trade was not properly planed and you exited as soon as you got the price in your favor. Indirectly this is the tendency of holding looser for larger time than winner.

2)Me : Hmm, you have some points for me. Well i have not thought in terms of AE Time and FE Time.

3)Dad: I have attached a visual of AE Time and FE Time for your Trade 1.

Trade 2

This is a blunder mistake if you ask me.

a)What is the puorpose of constructing a near zero credit synthetic position of such large size ? ( I am not going even in greek. )

b)How can you use approx 75% of fund in a single trade , even if its not limitation ?

c) Profitability of this trade is limited and constrained by time and price both.

d) Risk in this trade will increase exponentially if Market rises sudden at once by 200-300 points. Its very poorly Rewarded trade for Such Risk.

e) Even if Market Falls , this may not be profitable as Premium sizes are small.

f) Most blunder : You taken a position of 58 Lot , that will account for 58 x 20 = Rs 1160 as minimum brokerage and this comes approx 23% of Premium used. This is very skewed as your motive is to profit from premium difference due to various factor. Forget that....i bet this will be a loosing trade....only some magic can save this trade.

3)Me: OMG, this is really a looser. Thanx Very much dad for eye-opening lesson, i will take care in next trades.
Attached Images
File Type: jpg trade1.jpg (97.9 KB, 19 views)

Last edited by manoj agrawal; 04-07-2013 at 01:20 AM.
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  #20 (permalink)  
Old 04-07-2013, 03:01 AM
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@manoj - so u ended ur 1st trade in profit. nice one carry on!
btw in ur quest to survive the 1st 10 trading mnths (thts wt ur dad wants - isnt it?!) u wud cum across few frustrated soul(s) {infact its one only under different names} wid myopic view on mkts & wud question ur strategy the moment u post it. this/these lesser known soul(s) who is/are failed trader(s) hs/have nw becum mentor(s) but utter failure in risk & money management is separating the milk from water

btw ur content & interacting style is reminding me of some1

ooopss just forgot to tell u. if in case ur dad forgets to tell u - i told him to tell u to use zerodha brokers. even if u punch a 100 lot order, the brokerage will b 20/- only. confirm other details, terms & conditions by contacting them directly! thank me - i saved ur millions in brokerage for next 10 years or so
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