Lets analyze backways:
Say in July, we longed 75 nifty at 8600 (assume 75 in june though it was 25).... taking worst case
Now...at 8400, we added 75 more.......but jully expired near 8400.....we lost 200 points in july expiry and rolled over both lots in aug
not to forget 40 point premium lose as well
so, -200+0-40-40=-280 lose
Now, added 8440 2 lots aug and high came at 8600......now, u sold 1.....rt....160 point profit
it came 8400 again......u bought 1 more.......then 8300 came and gap down near 8000.......u bought 2 more......then 7800 come.....u bought 2 more..... expiry near 7900.......
u lost -700-500-100-100+100+100=-1200 points in aug....now u rolled over 6 lots with almost 40 points premium......-240 points lost more
it came to 8000....u sold 2 lots and pocketed 320 points......again 7800 come......2 lots added and 7600 come...4 lots added
it gone to 8000 in sep
in nutshell, u earned=-280+160-1200-240+320+640+320=-280 points lose till Sep....and then u started earning in oct........but is draw down of 1440 points digestable in 2 months........
u might earn in long term but will u keep loosing month after month if market goes opposite and down trend dont change for 7-8 months.......hypothetically
Say in July, we longed 75 nifty at 8600 (assume 75 in june though it was 25).... taking worst case
Now...at 8400, we added 75 more.......but jully expired near 8400.....we lost 200 points in july expiry and rolled over both lots in aug
not to forget 40 point premium lose as well
so, -200+0-40-40=-280 lose
Now, added 8440 2 lots aug and high came at 8600......now, u sold 1.....rt....160 point profit
it came 8400 again......u bought 1 more.......then 8300 came and gap down near 8000.......u bought 2 more......then 7800 come.....u bought 2 more..... expiry near 7900.......
u lost -700-500-100-100+100+100=-1200 points in aug....now u rolled over 6 lots with almost 40 points premium......-240 points lost more
it came to 8000....u sold 2 lots and pocketed 320 points......again 7800 come......2 lots added and 7600 come...4 lots added
it gone to 8000 in sep
in nutshell, u earned=-280+160-1200-240+320+640+320=-280 points lose till Sep....and then u started earning in oct........but is draw down of 1440 points digestable in 2 months........
u might earn in long term but will u keep loosing month after month if market goes opposite and down trend dont change for 7-8 months.......hypothetically