We have now completed 14 months journey of option buying on this blog.

We have seen both success and failure and have learnt some lessons from the experiences and are learning more all the time as this fascinating journey continues.

The focus has always been on cashing out the good trades to the maximum extent possible. We strive for this goal even though falling short many times. The results could not have been positive for this period unless some big profits were booked.

Let s review how the good trades delivered.

We had a total of 194 contracts bought in these 14 months.

Many of them ended worthless or resulted in a loss. Number of such trades is 124.

70 right trades combined to deliver a gross profit of Rs. 708937.

How much of it came from the big profit trades?

What is a big profit trade?

Any trade in which the bought option was sold for a price of 5 times or higher is considered as a big profit. In absolute terms, the amounts may vary significantly but the factor of 5 is common.

Stock Option Lot Size Buy Price Sell Price Profit
HINDUNILVR Call 1520 600 17.00 90.00 43800
TATAMOTORS Put 320 1500 4.50 37.50 49500
RELCAPITAL Put 400 750 1.20 11.30 7575
BHEL Put 75 7500 0.75 3.75 33750
UPL PUT 600 1200 8.00 42.00 40800
TATAMOTORS PUT 250 1500 4.00 24.75 31125
IBULHSGFIN PUT 1160 500 13.50 230 108250
L&TFH PUT 150 4500 1.40 28.00 119700
RELCAPITAL PUT 390 1500 5.05 53.00 71925
RELCAPITAL PUT 310 1500 3.00 17.00 21000
PNB PUT 75 5500 0.50 12.50 66000
HINDPETRO PUT 240 1575 6.75 76.00 109069
YESBANK PUT 175 1750 3.00 22.00 33250
SUNPHARMA PUT 450 1100 8.00 45.00 40700
HEROMOTOCO PUT 2800 200 28.00 150.00 24400
ZEEL PUT 480 1300 5.00 70.00 84500
RELCAPITAL PUT 170 1500 4.80 29.00 36300
TECHM PUT 700 1200 1.50 8.00 7800
GLENMARK PUT 500 1000 1.60 35.00 33400

Out of 70 trades which gave positive result, 19 trades gave a multiple of 5 or more.

These results could have been better but we have to go by the actual numbers.

Let us see the contribution of these trades towards the realized profit.

These 19 trades resulted in a profit of Rs. 962594.

This amount is much higher than our total profit of Rs. 708937.

What does it tell us? :

Option Buying can not be profitable if we book small profits.

Without these 19 big profits, we would be nowhere.

Those who tell you that it is an impossible game to make money through option buying are right in saying so as they know that most of the traders would not be waiting for and cashing the big opportunities.

A combination of method, skill , patience and luck will deliver these kind of results. Luck is one thing which we can not plan for but the first three are our jobs.

Let us keep doing our part and leave the rest to the market.

If we are sincere in our efforts, market will not fail us.

Big profits are the only way to profit.

Wait for such trades. Such opportunities will keep coming if we keep the faith and patience.

Enjoy the Sunday.

Back tomorrow with normal trading.