Awesome Day! Wasn't it?
To start with, today we had a more than decent Gap Up opening, and that caused our 100 and 200 sma's to automatically show an upward trajectory. So, since 100 and 200 sma's were looking up at around 12 noon today, we would only be looking for Buy opportunities in Nifty Call options.
While I was busy publishing today's signal, in the background however, Nifty Future had already breached the Buy price level of 5606.26. This is a classic example of a situation where price is higher than the Buy level at time of publishing today's signal. What would you do then? Well, what I would do is, wait for price to come into our consolidation zone (this zone is between the buy (5606.26) and sell (5587.56) levels) and then break either up or down with relatively strong price action candle.
In this case, price traveled up for a little while, then fell right back into our consolidation zone. Then, it broke past the Sell level with a strong move downward. You would have entered right at the moment price broke past the Sell level. This strong move sometimes is reason enough to enter a position. So, entry was at the point the candle marked by the vertical line' next candle (12:55 pm) breached the Sell level marked by horizontal line in red as shown in Picture A below.
So after 12:55 pm, I would go and Buy any of one of the top 3 Nifty Option naked Put strikes w.r.t. Open Interest shown at that time. Picture B below shows a vertical line just before the candle at which today's position was entered in 5300PE option:
To start with, today we had a more than decent Gap Up opening, and that caused our 100 and 200 sma's to automatically show an upward trajectory. So, since 100 and 200 sma's were looking up at around 12 noon today, we would only be looking for Buy opportunities in Nifty Call options.
While I was busy publishing today's signal, in the background however, Nifty Future had already breached the Buy price level of 5606.26. This is a classic example of a situation where price is higher than the Buy level at time of publishing today's signal. What would you do then? Well, what I would do is, wait for price to come into our consolidation zone (this zone is between the buy (5606.26) and sell (5587.56) levels) and then break either up or down with relatively strong price action candle.
In this case, price traveled up for a little while, then fell right back into our consolidation zone. Then, it broke past the Sell level with a strong move downward. You would have entered right at the moment price broke past the Sell level. This strong move sometimes is reason enough to enter a position. So, entry was at the point the candle marked by the vertical line' next candle (12:55 pm) breached the Sell level marked by horizontal line in red as shown in Picture A below.
Picture A (Nifty Future 5min candlestick chart)
Picture B (Nifty Option 5300PE 5min candlestick chart)
From Picture A above, we can see Nifty Futures level kept falling and continuously hit all our Target Profit levels. Blue horizontal lines are TP levels. Correspondingly, we see 5300PE keeps moving up. We would have closed 1 lot each after hitting each Nifty future level. Today, we hit all our TP levels.
Profit for Today's Signal: Bought 4 lots of 5300PE @ 12:55 pm @ 8.80 per unit. Exited
First 1 lot @ 10.00 = 1.2 per unit Or 60 per lot,
Second lot @ 12.00 = 3.2 per unit Or 160 per lot,
Third lot @ 17.40 = 8.6 per unit Or 430 per lot,
Fourth lot @ 18.00 = 9 per unit Or 450 per lot
Total Profit: 60 + 160 + 430 + 450 = 1100 Or 11000 for 40 lots
Gross Gain % = 1100 / (8.8 x 200 = 1760) * 100 = 62.5%
Note: Please deduct brokerage to arrive at Net Profit.
Well, it was a good day to take home some profits after 2 days of almost no activity. Hope you were part of this run today.
Please feel free to write into daytraderbt@gmail.com with your comments or feedbacks, I'm all ears!
Have a good day ahead...
Cheers!
DayTraderBT
No comments:
Post a Comment