Trade Performance Report for the week ending Nov 16, 2018

Weekly Report Cover

Market continues to be highly volatile. Hemce number of signals generated have alsoe been low. We have also been experimenting with more conservative strategies such as Debit and Calendar Spreads.

Debit spreads were introduced last month and on Nov 14th 2018 we introduced Calendar spreads.

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