Another day of mayhem in market. But today it was caused by HDFC Twins and not other stocks. On the contrary Reliance shot up from 1250 to 1285 levels. I was lucky enough to accumulate some more quantity at lower levels.
When such type of falls come its difficult to decide what kind of position one should create. There are chances of a dead cat bounce. There are chances of a further fall, so decision making becomes difficult. From so many strategies one have to be decisive on what strategy can give profit or loss.
When market shot up initially, I executed -5X29900 CE, +1X39800 CE of Bank Nifty. I was willing to add more positions later on to call side.
Later on Bank Nifty touched 29200 and started taking support. OI on 29000 started rising. That is when I took another -2X29700 PE from few accounts. Market bounced till 29300 and added some more positions to -3X29800 PE.
I still had room for more positions according to my though position sizing. So when market fell, I again waited for 29200 to hold. Market again took support and rather than being little too close, I chose to write -3X29700 PE Bank Nifty.
Now I am into strangles for various accounts.
Here is the cumulative net positions: