Here, I’m trading options. And since this is my main account, on the left side, you will see this weeks and next week’s positions. I’m going to blur out these trades, so new traders won’t blindly take the same trades, because these trades need adjustments, and are high risk if you don’t know what you are doing.

 

As you can see, Nifty opened with a gap up, and is coming down towards yesterday’s high. This high can act as a strong support level when price comes near it for the first time. So, I’m looking to sell the put option to catch this upward move. I’m only expecting for the price to move up, towards the low of the first candle, as that can act as resistance. Whatever happens after that I don’t really care. Now remember, I’m already long in Nifty with a bigger position since last week, so right now, I’m looking for small quick profits that will increase the overall profit.

 

When the price came near yesterday’s high, I took a long position by selling the put. I got in around 87.50, and when the price will go up, this put option will go down and I will make money. If price breaks below the support area, this option will go up, and will book the loss. This is an unedited clip, so you can see everything from start to end. So let’s see whether the price goes up, or we lose money.

 

Increase the video playback speed by 2 times, if you want to watch it quickly. If you want to see everything in real time, sit back, relax and watch how trades are taken and managed.

 

And profit booked! Price made a move just like we anticipated! It reacted from yesterday’s high, and made an upward move till the resistance. We got what we came for. So that’s all!