BSC Close for 21% loss

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Here is the 2nd losing trade of the month after RUT income trade, this was a speculative trade on BSC that I started here. I mentioned in my post that my nightmare was only it’s either rising or falling too quickly. I opened this with bearish outlook, and banked on IV and theta. Well, all went against the trade. After Mr Jimmy Cayne started calling the wall street titans on Monday afternoon, the stocks has since then rose roughly $23!!! IV went down by roughly 14%. I converted this specualtive into income trade but theta and delta alone couldn’t compensate for the adjustments.

bsc-double-calendar-08082007.pngThough I could have still fought with it to make further adjustments, but then there is no point of going to war with faulted machinery. The risk to reward simply doesn’t support that. 2ndly, we are only 8 days away from Aug expiration, with rapid movements in the stock, the greeks will go crazy and will require more adjustments.

So here we go, two losing trades for the month. 100% winning record is broken but both comes with good set of learnings.

Profitable trading, OP






One response to “BSC Close for 21% loss”

  1. ssubbaiah Avatar

    Closed the 100PUT for 2.20Cr
    and opened the following to recover the loss
    115 Put Sell Aug/Buy Sep for 3.25Dr
    120 Call Sell Aug/Buy Sep for 4.39Dr
    130 Call Sell Aug/Buy Sepl for 3.10Dr

    Looks good as of now…

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