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23/06/2022 - Post Market Discussion

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 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 exit. And it cannot be more true on any day than today. Today was a complete chaotic day, which killed almost every options trader. Being an expiry day, today had everything, a parabolic rise of 500pts followed by a consolidation for few mins then a complete fall of around 750pts, it didn't stop there, followed by a further parabolic move of around 500pts again. 

  • No matter which type of trader you are, no matter which strategy used, no matter Nifty or Banknifty you traded everyone's was killed mercilessly today. 

BANK NIFTY 5MIN CHART

BANKNIFTY JUN FUT 5MIN CHART




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22/06/2022 - Post Market Discussion

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  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...
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