30.03.2010
Today i also marked that when i am writing options (right now 3 strikes written)
I can sense early when they start moving up/down, as they clearly demonstrate that if they are going down than whenever nifty falls, they wont rise as much (puts written) and whenever nifty makes is going to make new high, they will continue to fall slowly.
Yesterday i closed 4900PE OF MAY, at 41 (wrote at 70) and low was 39, which today didn’t breached and afterwards it rallied to 53. When nifty fell by 1%.
Lessons Learnt.
1 always write minimum strikes( more lots of same strike) & keep HAWKs eye on previous days OHLC. Of each option.
2 doing above will help close position at optimum profit.
FOLLOW ON 1st april.2010
While nifty rose today by around only 1%, all options which rose previously by 20-30%, made fresh lows 40% down(from the price which i covered)
Dont know what happened suddenly, i was busy wathcing BN.
# Never underestimate the power of writing and never let the fear take control your decision for covering it early. Writing trades are 95% profitable , it fails only because of me.
# Never repeat this same mistake again.
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