Trade summery of highly volatile December series
December was the most volatile month of the year. Nifty had a highly volatile range of 6%. Some of the stocks even had a highly volatile range of 15% .
I had position in four stocks. Let's discuss each of them.
ADANIPORTS
Trade initiated on 24th November when ADANIPORTS was trading at 760.
Sold 700PE for a premium of 10.80
Sold 700PE for a premium of 10.80
From 760 share priced plunged 10.5% to 680,
From 680 again it moved up 16.9% to 795,
From 795 again it dropped 13.8% to 685,
Finally trade closed at 720
After firefighting and adjustments the net profit in the trade was 6.8%
From 680 again it moved up 16.9% to 795,
From 795 again it dropped 13.8% to 685,
Finally trade closed at 720
After firefighting and adjustments the net profit in the trade was 6.8%
JSWSTEEL
Trade initiated on 24th November when JSWSTEEL was trading at 690.
Sold 640PE for a premium of 5.60
From 690 share priced plunged 12.3% to 605,
From 605 again it moved up 14.4% to 692,
From 692 again it dropped 9.0% to 630,
Finally trade closed at 648
After firefighting and adjustments the net profit in the trade was 3.9%
TATAMOTORS
Trade initiated on 24th November when TATAMOTORS was trading at 500.
Sold 450PE for a premium of 6.0
From 500 share priced plunged 11.4% to 443,
From 443 again it moved up 14.2% to 506,
From 506 again it dropped 13.0% to 440,
Finally trade closed at 470
After firefighting and adjustments the net profit in the trade was 6.6%
WIPRO
Trade initiated on 24th November when WIPRO was trading at 640.
Sold 600PE for a premium of 6.0
From 640 share priced plunged 5.5% to 605,
From 605 again it moved up 10.7% to 670,
Finally trade closed at 670
After little adjustment the net profit in the trade was 2.8%
Total profit for the highly volatile month of December was 5.3%
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Disclaimer:- The article is for educational purpose only. Please consult your financial advisor before making any investment decision.
Are the positions initiated with fixed SL Or counter positions initiated aggressively.
ReplyDeleteWhether the positions were hold till expiry , if so how was margin requirements managed
Normally I sq.off the positions when I gain 70% of premium or 1 week before expiry. I buy equal qty protective puts at lower level and also sell calls if need arises.
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