Paper Trades Report for Sep 05. 2018

Daily Performance Report

When market indices go negative, strong stocks are the once that get hit badly.


Anthem Call Trade

ANTM opened with a gap up.

  • Our gain greater than 20% rule kicked in.
  • Position close signal triggered.
  • All calls (ITM, ATM & OTM) did pretty well with 44.23%, 100% and 133.33% respectively.


Today's opening trades

  • Buy To Open signals for ATM Calls in ISRG and ILMN got triggered.
  • These positions have lost their value as of now.
  • Sell to close signals have not triggered yet.


GOOGL Call Trade (Still open)

For GOOGL Call position there has been no Sell To Close signal, as GOOGL has not moved up since the position was initiated. 

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