Nifty & Bank Nifty Options: June Performance & July Strategy Revealed

Welcome to our comprehensive review and strategic outlook for Nifty & Bank Nifty options trading! As we transition from June to July, it's essential to reflect on our trading performance and strategically plan for the upcoming month.

In this article, we will delve into the details of our June 2024 profit and loss statement, providing you with a transparent and insightful analysis of our trading activities.

June was a month of dynamic market movements and opportunities. By examining our performance, we can identify key trends, understand our successes, and learn from our challenges.

We'll break down the trades that contributed to our overall profit and those that didn't, offering you a clear picture of our trading journey.

But we won't stop at just reviewing the past. Looking ahead, we'll share our carefully crafted trading plan for July 2024.

This plan is designed to navigate the ever-evolving market dynamics with confidence, leveraging the insights gained from June.

We'll discuss the strategies we're focusing on, the risk management techniques we're implementing, and the market conditions we're anticipating.

Whether you're a seasoned trader looking to fine-tune your approach or a novice eager to learn, this article is packed with valuable insights and actionable strategies.

Join us as we turn the lessons from June into a roadmap for success in July, ensuring you stay ahead in the Nifty & Bank Nifty options trading landscape.

Let's embark on this journey together and make July a month of strategic growth and profitable trades.

June 2024 Trading Performance: Detailed Profit and Loss Analysis

June was a month of high volatility. Due to election results, we saw VIX has made a high of 31.71. High Volatility brings good opportunities for option sellers but also brings high risk too.

We saw a very high premium this month. It was a tough time as options sellers for us. Most of the days VIX was going up and lowering the impact of theta decay which was the only source for options sellers.

But despite having high volatility, we managed to end up with a profit of 1.1% this month.

Compared to April and May, we made less return in June.

The reason is: that I only followed my newly developed two delta-neutral option strategies (Delite & Ranger) for Nifty and BankNifty that auto-adjust based on the market behaviour.

These strategies manage to handle the market fluctuations more effectively compare to traditional fixed stoploss type rule-based strategies.

• Here is the verified P/L link: Verified P/L Link of Account 1 (Capital deployed = 15 lakh)

One thing I want to mention here: 👇

This time, I followed these strategies more and took less manual traders compared to May 2024. I also made a mistake that cost me huge. I will share more about this mistake in the next section.

I have redesigned my Option Strategies: A Mentorship Program 4.0 to give more personalised help and support.

You can check more about the changes we bring to Mentorship Program 4.0 by clicking on the below button:

Beyond Profits: June's Lessons and Missteps in Options Trading

Trading isn't just about winning trades; it's about learning and evolving with the market. While June had its profitable moments, it also served as a stark reminder of the importance of discipline and constant vigilance. Here's a deeper look at the challenges I faced:

Mistake 1: Trading Against Rules: Lessons from FinNifty Expiry

I have a well-defined strategy for trading volatile instruments with expiry options. It's a calculated approach that has served me well in the past. However, the temptation of a seemingly low-risk, high-reward opportunity in the FinNifty, tricked me.

Ignoring my own rules, I entered in a live trade based in FinNifty. Although I was following my FinNifty strategy for more than 6 months, still I wasn't convinced enough to take live trade.

But I broke my own rule. The result? A painful reminder that straying from a proven plan can be costly.

This experience reinforced the importance of sticking to a well-defined strategy. It's easy to get caught up in the excitement of a potential trade, but disciplined traders know that emotions have no place in sound decision-making.

Mistake 2: Overreliance on Automation: Pitfalls of Algorithmic Trading

Automated trading tools are a valuable asset for any trader. They can execute trades with lightning speed, and remove emotion from the equation. However, these tools are not without their weaknesses.

In June, a technical glitch in my algo trading system led to a series of unattended open orders. These orders were executed at inopportune times, resulting in unnecessary losses. This incident highlighted the critical importance of maintaining oversight, even when using automated tools.

It's crucial to remember that even the most sophisticated algorithms are only as good as the data they receive and the parameters they're programmed to follow. Regular monitoring and manual intervention may be necessary to ensure that the tool is functioning as intended and that your positions are properly managed.

These setbacks underscore the ever-evolving nature of the markets. No trader is immune to mistakes, but the ability to identify them, learn from them, and adapt accordingly is what separates the successful from the struggling. June may have presented challenges, but the lessons I learned are invaluable as I refine my strategy and approach for the months to come.

July 2024: My Optimized Nifty & Bank Nifty Options Trading Strategy

June's market highlighted the limitations of my previous delta-neutral strategies, "Delite" and "Ranger." While effective in range-bound markets, they faltered during trends. Additionally, their reliance on a single automation tool (Stoxxo) posed a risk should technical issues arise, as they did last month.

To address these challenges, I've revamped my approach for July, optimizing my TradePik's Premium Strategies and incorporating an additional option buying strategy. This diversified portfolio, tested with a 15 lakh capital, aims to enhance overall performance and flexibility:

The new basket comprises three option selling strategies and two option buying strategies, combining the strengths of both approaches.

Key Adjustments for July:

• Diversification: I'll allocate 50% of my capital to the new optimized basket and 50% to the "Delite & Ranger" basket. This provides a balance between proven strategies and adaptability to varying market conditions.
• Flexibility: The new strategies are compatible with multiple algo trading tools, including AlgoTest and Quantiply. This mitigates the risk of technological disruptions and allows for seamless switching between platforms.

This multi-faceted strategy seeks to capitalize on both trending and range-bound markets, while ensuring resilience against potential technical setbacks. I believe this approach strikes a balance between risk management and profit potential.

Need More Clarity?

If you have questions or need further clarification about my July trading plan, please leave a comment below. I'm happy to share my insights based on my experience and expertise.

Interested in Collaborating?

If you're struggling to manage your trading account and are interested in exploring a profit-sharing partnership, feel free to reach out to me on WhatsApp.

Let's make July a profitable month together!

Disclaimer: The information provided here is for educational purposes only and does not constitute financial advice. Always consult with a qualified financial professional before making any investment decisions.