Mr. Expiry Trader

Opening MTM = +20k Closing MTM = +25k As SGX indicated the markets opened pretty bad. Banknifty opened almost 1.1%. Anything with 05% would have left us in a very good position. Our MTM opened at around 20k, 14k less from previous day close. After 5 mins, shifted down 10lots calls from 34000 to 33500, and 20lots from 34200 to 32800. After 10 mins, also shifted 20lots puts from 33300 to 33100, where we already had 10lots short. And also brought the hedges closer to increase the margin. The whole day was range bound, we didn't do anything. Just waited for decay to come. We were never gonna hold the positions overnight, because of US GDP data release. (But while writing this blog, the data has been released and SGX sucker is flat, despite the news being a negative one). It was not comfortable to ruin the whole position for just another 2-3k decay, so exited the positions at around 1.00PM. While we exited we just got caught up in a spike in the gap between exiting the shorts and long, ...

Opening MTM = +17k Closing MTM = +30k Today the markets opened with almost 0.7% gap down. Fortunately, the gap started to fill up initially. But, after 9.40 the market started to reverse and fall again. So we shifted both the calls and puts 200pts down. Rolled 34400CE to 34200CE, and 33500PE to 33300PE. At around 10.45AM, we added a fresh IC to take some extra credit for the week. Added 10lots 34000-32900 with hedges 500pts away.  The market was almost complete flat for the whole day, with a little bit of volatility. Theta decay came beautifully for the whole day.  At 3.20, shifted the call hedges near to 34500 and put hedges to 32800. To make up for the debit, shifted the 10lots puts from 32900 to 33100. Although we have made almost 1.5% for the week already, still since the positions were comfortable, held it overnight. But, as of writing this blog(11.00PM). SGX NIFTY is 1% down. Either tomorrow is gonna be a long day, or this week's profit's gonna be completely washed at op...

Opening MTM = 0 Closing MTM = +16k Today markets opened with a considerable amount of Gap up. Initially we thought VIX would crash 4-5% for this gap up. But surprisingly, after opening the gap started to fill, markets started to fall, and within no time Vix was up by 2%. At around 9.30AM, as usual we took our positions for this week. Initially we took 500lots of 33500-34600 strangle with hedges at 800pts away. The market was at 33k and was falling while we took positions. After we took positions, the market continuously fell for the next 2 hours, with slight consolidation. at around 11.30AM, Banknifty was at 33800, though MTM for our positions was manageable but the PE OI data was not looking nice, there was absolutely no addition in puts. To go with the OI data. At 12.00PM, we shifted the calls 200pts down to 34400.  Then the whole day, Banknifty was sideways with slightly falling after 2. But good amount decay came in the second half of the day. Our MTM was shooting up after 3. E...

 Opening MTM = 24k Closing MTM = -2k An expiry day cannot be more worse than today, definitely not. To sum up the day, 33k ATM straddle was priced at around 300rs at 9.20AM, in the next 30mins BN shot up 300pts.  We had 32500PE and 33300CE overnight 625qty, as soon as the market opened at 32900 both the short decayed significantly and we were soon at around 30k MTM for the week. But then, don't know what happened to BN, it shot up parabolically 500pts. We tried to do roll up the puts in order to fight for the delta of the 33000CE which was rising against us pretty fast.  At 10.00PM, we closed all our positions with a loss of around -2k for the week. Although our CE side short was slightly ITM, since it was an expiry day there's always the risk of gamma spike. Moreover, the upmove was parabolic and there was always the risk of further falling, but holding onto the positions doesn't seemed really worth the risk so we exited. Sometimes the best trade you could ever take is e...

  Opening MTM = 20k. Closing MTM = 11k. Yesterday night SGX indicated a gap up of half a percent, but today morning it was down by half a percent. BN opening only half a percent down, but the gap sustained, an in no time our positions were in danger. We had PE short at 33000 and 32800, the market was rushing towards 32800. As a proactive measure, we immediately shifter 25lots of PE at 32800 to 32700. PE OI was added hugely, and there was a threat for further falling, so we shifted our 25lots CE from 33300 to 33100, and also added fresh 10lots CE at 33000. This adjustment costed us in an very uncomfortable position where no matter wherever the market went, our MTM was going negative. But still we trusted OI and held our position. After we entered, the market started rising with consolidation, and soon it crossed 33k. However, since CE OI didn't drop, we held on to our position.  MTM went from +20k to 0 to -10k.  At 11AM, BN took resistance at day's open, and started to fal...

Opening MTM = 11k Closing MTM = 20k Since, yesterday US markets were closed. So, we didn't had any idea about where will the markets open, but in the morning SGX indicated a slight gap up. BankNifty had other ideas, and opened with a gap up of almost 1%.  We had shorts at 33200CE and 32200CE overnight, 625qty each with hedges at around 500pts from short. BN opened at around 33000 and initially came the sell off, within 15mins it came to 32800, and we were in a commanding position with MTM shooting upto 24k at 9.30.  However, within the next 30mins, BN shot up 300pts to 33100. CE OI also got significantly reduced, and PE OI at 33k was hugely added. So, we shifted the CE to 33300 and rolled up the PE to 32500.  At 10.30. The market consolidated, but PE OI was adding up continuously. So, we shifted the puts further up to 32700. And also, added extra 10lots PE at 33000, as PE OI at 33k was adding up hugely. Around 12, Zerodha and Upstox servers stopped working. We thought we ...