Paper Trades Report for Sep 17. 2018

Daily Report Cover Sep 17

Market was very week today. Hence new positions were opened.

Home Depot (HD) and Sherwin Williams (SHW) Trades

These two call positions were closed at high of the day. Following table gives details of the trades.


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