Paper Trades Report for the week ending Sep 7, 2018

Weekly Report Cover

Change In Trade Signal Posting on Twitter/Stocktwits

As there were several requests we decided to modify the way we were sending out the signal on Twitter and Stocktwits 

  • An advance notice of potential signal will be posted when a certain threshold is hit.
  • No details of calls (Strike, Price etc) will be posted. 
  • Only SYMBOL and BUY/SELL signal will be provided.

Once the market is closed hypothetical trades for following instruments will be published

  • ATM Call (50% Delta)
  • OTM Call (around 25 % Delta)
  • DITM Call (Close to 100% Delta)

 

Trades this week

Though market was quite volatile our system performed pretty well except GOOGL call that carried over from previous week.

Following table gives the details of all the trades opened/closed. There are two open trades that will be closed on Monday High.

Weekly Report

Our trading rules for short term trades using ATM options are as follows:

  1. Be very conservative to open an options position.
  2. Once a position is opened, be very aggressive to close open position to avoid value erosion due to theta decay or Implied Volatility (IV) collapse.
  3. Position close signal gets generated based on following criteria:
    • Day’s high price is hit OR 
    • When accumulated profit is > 20% OR
    • End of the day OR
    • If held overnight Followng day high Irrespective of gain/loss
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