Date: 23-06-2020

Time: 10:30 

Nifty is trading at 10300 and the trend is sideways with no concrete reason to fall. However the common consensus among the people is the market has ran up and overbought discounting all the bad news of covid-19. The Put premium is high

At 9.45 AM I sold 2 lots of 9600 PE at Rs 7.30 25 June Nifty series without buying the hedge because i thought why should i waste money in hedging the position as there are only 3 more days for expiry including today and market will not fall 700 points which is almost 7% and per day 2% fall. When i sold this market was 10350 range and trading 0.5% higher. 

However after selling the 9600 PE at 10.00 AM market went down slightly giving the days gain of 0.5% causing the premim to increase to Rs 8 - i started considering buying the hedge at 9500 PE which was at Rs 5.8 when i sold 9600 PE- since the market gave up day's gain the 9500 PE premium also went to Rs 6. I reconsidered my position and decided to buy the hedge and put a limit order at Rs.6 . Very soon the premium shoot up to Rs 6.3 and the markets were showing signs going further resulting in premium for 9500 PE increasing. Then i modified the buy order 9500 PE to market and ended up buying at Rs 6.3

Currently at 10.30 the same 9300 PE is trading at premium back to 5.45 since the market recovered from day's low. 

Learning :

1. Don't sell Naked put / call irrespective of how far the OTM is . If we do this and if the market is turning opposite to our belief - we will get nervous and tend to make mistake. hence stick only to the plan of taking hedged position irrespective of the POP 

2. Always stick to the plan and strategy because deviating from the plan leads to mistake which leads to nervousness and that leads to wrong decisions and more losses. 

3. Never try to get more than your planned return even by slightly deviating from the plan . Always stck to plan 

Over and above the iron condor I sold 2 lots PUT spread because of high IV on put side at 10 AM as mentioned and another close range IC 6% gap on down side and 4% gap on up side at  1 PM

Trading plan