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buy 5500 straddle for total of 44 (24+20)
target : 60
remark : Expiry days normally produce a 60+ move. the HOD is 5520, LOD is 5480, giving room for another 20-25 point move from the extreme. It should be enough o give me my target. LOD made on 5500 call is 16.70 while 5500 put has made LOD of 16.75. Stoploss of 15 on both leg should give a room for 45 points tgt on the winning leg...
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this drifting action towards key level saw demand at key level...
trend remains down.. conviction on down side remains low...! not a good sign for my long straddle... good news is..both legs are intact... modifying sl might prove to be a disaster also... but options will hit LOD before UL and it did...!
I won't be trading tomorrow... so a summary of the week gone by is in order. So far, 23 trades done, 2 hit stop loss, 6 were scratch trades and 14 hit target or gave decent exits, 1 trade is still open and is in m2m profit.
Execution were good in most trades. Area to ponder is the trend definition by guppy's clear trend method. Concept appears interesting. Will have to do some back testing and keep it on active watch for next week.
The 5500 straddle trade went picture perfect. There was room for huge mess up if i didn't exit the put at 38. Next time t\have to remind myself to trail the open leg at breakeven. We went to break the HOD and the trade would be scary.
The reliance trade was better done with futures instead of options. Weekend decay will eat away some profit and holding longs on a market retracing from 7 month high was not so good idea to begin with. Could have exited the other half with decent profit and there was plenty of time and incentive to close trade at 849...! giving back profit is a criminal offense and sometimes market will pick pocket of the careless....!
Overall, it was a satisfactory week.
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