It was with a great apprehension that I had started the series about Options Buying from May Expiry.

May 2018 :

Selections had gone very smoothly in May and we ran up a good profit quickly and stayed comfortable for most of the month.

The results were good.

Calls –2  Right –2 Wrong –00

Puts — 9  Right — 2 Wrong — 07

Out of 11 trades, only 4 were right. With this success rate too the profit was Rs. 67450.

Did anyone actually take this much profit ?

Probably not. We traders are afraid to wait in profit whereas we wait endlessly while in loss. We hope while the loss is mounting but somehow do not have the same hope from our trades which are doing well. It is this contradiction in behaviour which causes the loss. Change your temperament, learn to wait for the big move and be in the trade when that move happens. Profits will follow.

June 2018 :

The smooth passage in May gave confidence for June trades. Lot of trades were taken right at the beginning of the month. Slowly they started going wrong. And kept on going wrong. It was tough to keep the belief and think of new trades. A trader has to keep trading and not lose the faith in the methods which worked in the past. Market will ultimately do something good for you, only you should not have run away by that time.

But it was really challenging.

Writing in public domain is not easy. Bouquets and brickbats both come in equal numbers. Fortunately none of the readers expressed their dismay and anger when the position was like this just 4 days before expiry.

With 4 days to go , the loss figure was Rs. 40751.

Patience was kept. Few more trades were added in the last two days and market did the best for us.

On Expiry day we had these results.

The loss of Rs. 40751 turned into a profit of Rs. 55807.50 by the simple act of doing nothing.

The few trades taken in the last two days also went well and resulted in a profit of Rs. 30576.

Calls — 3 Right –00

Puts — 15 Right — 10

Trades — 18  Right — 10 Wrong — 8

It was like scoring 50 runs in the last 2 overs of a T 20 Cricket Match.

July 2018 :

Having survived the June ordeal, I expected easy passage in July. Market is a teacher. It teaches us discipline, patience, emotional control and everything else what we want to learn from it.

By July 10, we were looking at a loss of Rs. 42000. Half of our capital of Rs. 84000 was gone. A repeat of June was on the cards. But one can not see into the future and with losses the fear factor becomes high.

Wheels of fortune turned. Few days later, we were looking at a profit of more than Rs. 11800. ( July 16 )

Once again it was teaching time for the market and learning time for us.

We were all into PUTS this month. Market went on rising almost everyday and our profits vanished. Still we ended up profitable though they did not look as good as in the picture above.

This was the final outcome of July Series :

A profit of Rs. 42828.

Calls : 00 Right :00

Puts : 15  Right : 05

Trades : 15  Right : 05 Wrong : 10

Summary of 3 Months :

It is seen that every month ended profitable. It has happened this time, may not happen again. There could be a losing month also. Aim is to stay profitable on an yearly basis. Occasional losing month can not be avoided.

July was another interesting lesson. We were profitable with only 5 trades out of 15 going right ( All PUTS ) in a month when NIFTY went up by more than 500 points.

This goes on to prove that we do not need too many right trades to make profit and trading against the trend also works at times if your selection process is good.

Total profit for 3 months comes to Rs. 196661.

Total Trades — 44

Right Trades — 19

Wrong Trades — 25

Let us not look for number of successful trades. What we get out of a successful trade is important.

I hope the experience for the readers was equally educative and new things were learnt.

Let us keep the faith that the method would keep working in future as well.

Enjoy the Sunday.