Context : As I explained in my post earlier, I expected strong selling in the zone 11380-11630. Remember this zone is where the shock moves started happening in February 2020. I actually did not trade much in the zone, but I started shorting around the upper range of the zone - around 11600.
About Trade :
I have been positional short from Sept 13, I bought Oct 29 PUTs to give me more time. But NIFTY moved in the anticipated direction.
When I am sitting on profit, it is important to protect my profits. But also I should be careful of not being fearful. I did the following adjustments
1) I covered more than half of my position.
2) Remaining position I rolled below 200 points. I also hedged the same by selling even lower strike PUT of near expiry.
All this ensured, I have taken profits. And then I am also in the trade. Downside is I won't be making large money if NIFTY continues to sell off in the next 2-3 days.
Why did I booked some profit?
1) NIFTY made a very symmetrical move to the initial move, and many times, that makes traders to cover the positions. This means less momentum on downside.
2) There was a large 0.6%+ hourly bar at important support level - 11040. This also can be seen as a hammer in the 2hr chart.
3) Tomorrow is expiry. And because we had a large range month, it is not unnatural to have some confusing counter moves. It is better to step aside and just watch.
References:
Sep 13 Short
Sep 3 Short
Aug 28 Short
About Trade :
I have been positional short from Sept 13, I bought Oct 29 PUTs to give me more time. But NIFTY moved in the anticipated direction.
When I am sitting on profit, it is important to protect my profits. But also I should be careful of not being fearful. I did the following adjustments
1) I covered more than half of my position.
2) Remaining position I rolled below 200 points. I also hedged the same by selling even lower strike PUT of near expiry.
All this ensured, I have taken profits. And then I am also in the trade. Downside is I won't be making large money if NIFTY continues to sell off in the next 2-3 days.
Why did I booked some profit?
1) NIFTY made a very symmetrical move to the initial move, and many times, that makes traders to cover the positions. This means less momentum on downside.
2) There was a large 0.6%+ hourly bar at important support level - 11040. This also can be seen as a hammer in the 2hr chart.
3) Tomorrow is expiry. And because we had a large range month, it is not unnatural to have some confusing counter moves. It is better to step aside and just watch.
References:
Sep 13 Short
Sep 3 Short
Aug 28 Short
