Lets Execute the Trade - Banknifty 49300 PE Short
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I shorted BNF 49300 PE @700 as it broke the 20 hour low. The initial SL is 2 ATR @ 960 and I will trail is with 20 hour high.
Lets see how that goes.
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Since there is 50% move immediately, I am booking profit here and will short 50000 PE -
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Shorted @ 735 Initial SL 1015
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CMP is 505 which is 1:1 RR. I need at least 1:1.5 RR so I am going to book this and enter a new trade.
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I sold 50500 PE @800 with a SL @960. The RR is in my favor now. -
Correction : Sl is 1060
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The move is in my favor. I have shifted my SL @ 890 to maintain a RR of 1:1.5 -
I went through a lot of videos of Van Thorpe recently and I found Risk Reward as the SL for option shorting. The 1:1.5 is the right RR for me. It suits my risk appetite and keep in the trade for a longer time. I trail the SL which maintains that RR. The low price is 308. So the formula for calculating the trailing SL is (308/1.5)+308=514
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Using donchian channels??
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Yes..20 period
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The Option price is 250 hence my trailing SL is 417. -
The Price is 100 rs now which is amlost 90% of the selling price. I want to move to the ATM strike hence I will move the SL to 1:1 RR which is 200
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Booked at 79. Will sell 52000 PE below 665
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Sold @665 with initial Sl of 2 ATR 1015
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The Price closed at 420. The low was 410 hence my trailing SL to maintain a 1:1.5 RR is 685. -
The Price made a low of 345 today. I have moved my trailing SL to 575 to maintain a 1:1.5 RR -
The price made a low of 291 and hence my trailing SL was 485 which triggered now hence i exited the trade. I will sell one ITM CE/PE which breaks the 20 hour low first.
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Both the CE and PE charts were above 20 hour low hence I did not initiate the trade. I will take the trade whenever setup occurs.
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Ravi Bhai - in this you are keeping focus on 20hr low , whether it is CE/PE - you will short and trail ?
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Correct
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