Paper Trades Report for Sep 20, 2018

Daily Report Sep 20

As soon as the market opened, all strong stocks started moving higher. Sell to close signals for $CRM and $HCA Call positions, that were opened yesterday, came early in the morning. Since there were no substantial pull back system generated one Buy To Open signal for $HAS.

Following table gives details of all the trades initiated and closed today.

Daily Trade Report Sep 20

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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