Yesterday I took a break from writing on this blog after quite a long time. It was more out of necessity than choice. There was a problem with the laptop which could not be solved in the morning and after that it was too late.
Market was anyway closed yesterday and a day of rest does not do any harm.
Let us use this holiday to have a look at how the two strategies are doing. Both are new chapters on this blog and many readers are eagerly watching the performance before deciding whether to go with them or not.
After a big loss in the last week of September, it was hoped that October would begin well. That did not happen and more losses were booked for the trades for October 01, 2020 Expiry.
The status since beginning:
Two weeks ago, we were on a high. That status was too good to be true. Last two weeks have brought us crashing down to the harsh reality of the market. The higher we fly, harder is the fall.
At present, we are looking at a profit of just Rs. 13743 in NIFTY trades and a loss of Rs. 8543 in BANKNIFTY trades. Position can get better in just one good week or could get worse as well.
We shall continue with the strategy before coming to a conclusion about its success or otherwise.
Verdict: Down but not out. We wait.
Bucking The Trend :
We completed Week -3 of this strategy on Thursday as market was closed on Friday, October 02.
In this week only 3 trades were taken and one of them could be closed with a good profit.
Closed trade was in TCS PUT spreads:
With these the results of 3 weeks closed trades is:
Week 1 —– 3 Trades —- Rs. 13548
Week 2 —— 5 Trades — Rs. 21708
Week 3 ——- 1 Trade —— Rs. 7185
Profit from 9 Sets of Trades —- Rs. 42441.
Doing very well so far.
Other two trades were CALL spreads in COALINDIA and NTPC.
Their status at close on October 01:
Both the trades are doing fine for the present. We shall know next week whether they end up profitable.
It is still too early to form a view on this strategy. We know that a big move against the trend can hurt the trades. At some point of time that will surely happen. How much profit is taken prior to suffering the loss would decide the fate of the strategy.
Let us hold the judgement till a time in future and continue to do our job with best of our efforts.
That was all for today.
Enjoy the holidays.
Please visit again tomorrow for more food for thought.
Thanks for reading.