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[jamit_05]

Thank God for the reality check. Finally a losing trade.

Our position is getting hammered... cost down to 120. Current loss Rs.14
Will exit it EOD.

Approaching 5100.... loss might get reduced.

 

[jamit_05]

Very urgent and voluminous short covering came right on time... our saving grace...

Will end the the trade with less than Rs.10 loss....

 

[jamit_05]

As an careful eye would notice the 50/52 pair is at 117.... not a convincing figure to short at... would want it in 130s atleast.... this also reflects the fact that this 100 points teji, in most part, is short covering... and not bulls getting excited... else premiums would be stellar...

 

[jamit_05]

Trade sold at 128.65; with a meagre loss of Rs. 5..... this makes me say the popular American Term.... TGIF.... Thank God Its Friday

 

[vssoma]

jamit,
i haven't exited my trade...cause, expiry is too far, so i am thinking time decay will not work against that much to destroy my trade....let's see...what's going to do market on Monday then i'll plan for exit.

 

[mmca2006]

Trade sold at 128.65; with a meagre loss of Rs. 5..... this makes me say the popular American Term.... TGIF.... Thank God Its Friday

Thanks lot for this tread, since inception I am following your post , and want to know how you defeating time decay ? Though your trade last for 2-3 days, time decay is obvious , if we follow just opposite i.e sell two pairs , time decay will work for us and probably will get more profit , waiting for your views.

 

[miscos]

This is an interesting thread and I would like to keep watch on it. My question is, this trade on 100OTM option is a buy pair to be sold later in profit or vice versa also.
1.Like if I got right, you plan to sell a pair on monday, so the intention is to take the time decay into pocket?
2. If anybody is interested for buy pair 1st and sell later, he needs to wait for the pair value to be aroun 100?
Thank you inadvance.

 

[jamit_05]

It has been my unshakable intention to keep it simple. Each time the process became complicated I went back to revising the concept.

The following is the new rehashed versions, which I am sure like minded traders will benefit from.... simply.

Longs

Concept: TGIF

Action: Buy Pair On Friday morning and hold till EOD... profit or loss.

Pros:

1. Most Fridays are trending days. Hence, Strike Rate is awesome.
2. Even if some are not, I will lose only one day to time-decay. Worst case 10% loss.
3. Best mental clarity, since no additional parameters to monitor. This will improve performance.

Cons

1. Only one trade a week.

Comments:

• The concept of base is now nullified. No need to monitor each days cost. I totally hated it.
  
  
• SR is already very good and I feel the RR will also be very nice. Only one day of time-decay. Lets play it out and see what more Marketji has to teach us.
  
  
• Four trades a month. Even if I end up with Nett. one profitable a month then too I make around 10%... that is doubling money in 10 trades! Not bad.
  
  
• More than anything else, I am happy because execution is super simple. Just the way I like it. I have already put in my hard work, time and intel in developing the concept.
  

Shorts

Concept: Two big days do not come back to back.

Action: Short a pair on Morning after a big moving day (next day is often a gap).

Risk Reward: Set RR as 1:1 ;

Pros

1. After a big move the premiums are often inflated which is when we short and get additional benefit from the fizz out.

Cons

1. Uncovered Shorts are inherently dangerous. Like naked live high voltage wires. And since I am risk (and also stress and work) averse, it will affect me more.

Comments

1. SR is very good. SR is almost 95% after 2nd back to back big day. Happens less often, but whenever is does... be sure to rake in free money by increasing position size.

2. Intend to hold trade for max two days.

3. Tentative exit and SL is 15% of cost.

4. Another personal benefit I have is that, I already trade an intraday method which counts heavily on days being big (trending). So, if this works out, then I make money either way. (Is there another definition of Heaven?

 

[jamit_05]

1.Like if I got right, you plan to sell a pair on monday, so the intention is to take the time decay into pocket?

Yes. Time-decay and the Fizz out.

2. If anybody is interested for buy pair 1st and sell later, he needs to wait for the pair value to be aroun 100?
Thank you inadvance.

Change in concept there. After much deliberation, I have decided to chuck out the concept of base... so you do not need to track the pair value. Just buy on Friday morning and sell EOD. Pls refer to the newest post.

Tc.

 

[Jeareh]

Hi Amit,

How you select the pair?