December – Mixed trades of Profit and Loss in a range bound month

End of December Series and beginning of January Series – What to Expect?

There were 7 trades for the month. Out of the 7 trades, 3 were profitable and 4 ended up in loss. With a starting capital of Rs.30,000, the final loss for the month stand at Rs.778.75. For the 5 month period that began in Aug-2012, we are sitting with a profit of Rs.18,658.75 on an investment of Rs. 30,000, a return of 62.2%.

What went right for the month?

The initial option trade of SBIN proved to be profitable and we began the month on a good note.

What went wrong for the month?

Overall it was a range bound month and so we were unable to make most out of our trades by setting aggressive targets.

Learnings and how do we move forward

1. The month was range bound and our targets were set quite high. A few of the profitable opportunities were missed out when markets turned direction.

How does it look like for the January series

As we enter January, markets have started on a strong bullish note, but there are negative divergences seen in both weekly and daily charts which point to the fact that markets are moving up irrationally.

Nifty December Expiry Charts

The expiry chart is given below

Performance for the month of December

Date Open Date Closed Scrip Option Type Strike Expiry Num Lots * Lot size Entry Price Exit Price Total Investment Profit/Loss Comment
29-Nov-2012,12:27 pm 30-Nov-2012,10:09 am SBIN CE 2200.00 27DEC2012 2 * 50(100) 43 62.45 4300 1945 SBIN looking strong with positive divergence. Call trade executed for next month series. Closing Comment: Target reached
05-Dec-2012,10:52 am 06-Dec-2012,3:05 pm NIFTY PE 5800.00 27DEC2012 3 * 50(150) 37.45 26 5617.5 -1717.5 System pointing towards bearishness after nearing the initial up move of 5925.Closing comment: After making a high of 55 for 5800 PE, market gave a bounce before reaching our target of 59 and the stop loss of 26 got triggered.
10-Dec-2012, 9:55 am 11-Dec-2012, 9:25 am NIFTY PE 5800.00 27DEC2012 4 * 50(200) 26.10 16.95 5220 -1830 System pointing towards bearishness. A good reward:risk trade: Closing comment: SL triggered. Was not able to close at the specified stop loss of 18.8 and the position is closed lower at the rate of 16.95.
07-Dec-2012,10:12 am 18-Dec-2012, 12:27 pm IDBI PE 105.00 27DEC2012 1 * 2000(2000) 1.4 0.85 2800 -1100 Bearish divergence seen. Closing Comment: closed at 0.85. Nifty seen in a tight volatile range.
11-Dec-2012, 2:44 pm 18-Dec-2012, 12:27 pm NIFTY PE 5900.00 27DEC2012 1 * 50(50) 56 52 2800 -200 Final bull trap made at 5965 levels. System indicating further bearishness. Closing comment: The put appreciated only till 81 levels. Intraday volatility has increased and NIFTY moving back in range. Position closed for 52.
Date Open Date Closed Scrip Option Type Strike Expiry Num Lots * Lot size Entry Price Exit Price Total Investment Profit/Loss Comment
14-Dec-2012, 1:08 pm 18-Dec-2012, 12:27 pm INFY PE 2250.00 27DEC2012 1 * 125(125) 19.10 22.85 2387.5 468.75 Pattern indicating a bearish move. Closing comment: Market moving in volatile range. Position closed at Rs.22.85
21-Dec-2012,10:13 am 21-Dec-2012,3:02 pm NIFTY PE 5900.00 27DEC2012 2 * 50(100) 50 66.55 5000 1655 Nifty looking bearish. Expecting a down trend day to reach our original target. Closing Comment: Position closed at 66.55 intraday. Will initiate new trade on Monday based on system and conditions
Overall Profit/Loss Rs.-778.75

Happy Trading

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