26 September 2020, a day etched in my heart forever

To keep it short, here is the summary for the week:

For the 4th Week, till my last update, we had a profit of 1,35,000.

At the end of day, KAM has hit the record profit for week which now stands at Rs. 3,83,000/-.

At the end of month, KAM generated a total profit of ₹5,64,000/-.


I am happy for all the clients and ofcourse my personal account as everybody has achieved the target profit. In some cases, where capital was adequate, we made more than target profits.

I am not happy for one of my new clients, for which we made a monthly loss of ₹50,000/- as we were restricted by leverage available for Intraday trading today. It was something out of my hand and feeling dissapointed due to same.


Here is the screenshot of Intraday profits.




Now the long story.


I had achieved my conservative target in the morning. I wanted to complete the next target.


So I sold 30700 CE at 6.5 and 29300 Put at 5.5 in morning when Bank Nifty was at 30,000/-.


As soon as i shifted to charting software, Bank Nifty in the matter of 5 minutes jumped 500 points. Till the time I could exit 30700 at stoploss, Price of 30700 CE jumped from Rs. 12 to Rs. 450+ in matter of 3 minutes.


As soon as I squared off positions, I was at a mark to mark loss 0f -14 Lakh. That is when I decided to fight this situation. I started selling option with intraday leverage. In my workshops also I have mantained that leverage is a tool. If you dont need it, dont use it. But if you need it, then it should be there.


ONE THING WAS PRETTY MUCH CLEAR TO ME. NO MATTER WHAT THE STRIKE PRICE. 90% OPTIONS WERE GOING TO EXPIRE AT 0 BY THE END OF DAY AND I HAVE TO BE ON THE RIGHT SIDE. WITH THAT I KEPT WRITING AND BOOKING PROFITS.


When market came down to 29900 after scaling 30700, I had booked profit at many strikes. But still I was into mark to mark loss. Mark to Mark loss at one time was 20+ Lakh. And it was nightmare. Only thing, that kept me going was that I knew what I was doing. All options apart from wrong ones were going to be 0.


At 12:30, it was intuitive to me that we will expire somewhere between 29900 - 30000- 30100 so I kept positioning my trades accordingly.


Slowly and steadily, premiums started to decay and finally landed me into profit. NO MATTER THE CRAZINESS. OTM HAD TO EXPIRE WORTHLESS. AND THATS WHAT I DID.


To beginners, I dont recommend it to anyone. I am doing it for 2+ years, so I knew what I was doing. Some clients were monitoring there accounts and I am thankful that they trusted me. No one called in panic even after seeing the mark to mark. I am humbled by their patience.


I also understood why a good broker matters. Not even once did ODIN gave any problem during such volatile times. Discount brokerage is there so I never worried about cost. Collectively I punched approximately 560 orders today to manage this black swan event. Not a single time, I got a margin call from broker, or any call or strike got frozen. Thats what a good broker is.


One more thing. Today if my risk was more, then so does my reward. If I was looking at mark to mark of negative 20, then I was also looking at a positive premium collection of 10 lakh.


So in the end, I always knew that eventually mark to mark will start getting positive. As soon as it came to 2.19 lakh, I started closing the positions and collected profits.








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Is option trading worth it?

Short answer is Yes. I have been trading in stock markets for last 10+ years and for 8 years our of that I have been an Options Trader. Trading is like any other business. You buy low and sell higher.