Markets Opened Lower, however price was above VWAP and deltas looked a bit more on the bullish side. I decided to sell at the lowest ATR Level which was 6887.3. I the strikes I chose were 6880/6870. I figured as long as price stayed above VWAP, we could earn premium off time. I sold my contracts for $0.75 a piece however they climbed as high as $1.00. My Stop loss was set to two candle closes below VWAP. Looking to close these at $0.05. I did also sell calls at one point to hedge but the push up I closed them for a $0.35 loss. The strikes I chose at the time was 6995 and mvc was 7000 for positive. I honestly didn’t want to risk on the chance for price to hit mvc. I got faked out on the push up. Need to be a bit more patient. Going to take this as a $35 lesson.
Update: I closed these positions at a $5 loss each. I probably could have held these and they would have expired worthless but the MVC for negative Gamma is so big at 6900 that I really didn’t want to risk it. If it goes down that low, ill think of getting another position. So today so far, I’m down $45.
Update 2: So Price reached 6900, my alert ran and I quickly set an order for 2 6850/6840 Puts for $0.55 each. Premium rose up to $1.00 however they are now basically worthless. Will hope until expiry or if price goes below 6896 which is the low of day. If it expires worthless then I went from a small negative to small positive. Its always good to reposition at a better time.