Today I am going to post my first review of the fund. As of today the fund is doing fine. As promised all the trades from the month of July will be shared. I have completed my first trade and I’ve already hopped onto the second for July expiry. I’m also going to try and reason out my trades.

So we started July on a strong note where markets were looking to climb higher. I decided to buy my all time favourite stock Yes Bank. The markets were trading close to 5200 and Yes Bank was around 342 when the stake sale thing got happened around 325 and the stock crashed to those levels. I bought about 3 lots of futures at 329.50 as I knew that there was no fundamental reason behind that fall except that someone sold a large chunk at a lower level. The markets were not falling but this stock had fallen, so it was a great time to buy. Then came some positive news from Europe and the stock climbed to 339 and got stuck there even when markets rallied almost to 5300 in nifty. Yes Bank was under performing like anything. My calculations were that Yes Bank was supposed to be around 360 when Nifty hit 5300 and not at 340 as it was quoting. I used that opportunity and added 1 lot of 320 call at 23 rupees.

In simple terms, I cautiously used the power of leveraging and had 3000 shares at 329.5 and 1000 shares at 343. As expected, even though the market remained flat at 5300, Yes Bank constantly moved up and crossed 360. Markets were having problems in moving above that 5320-5330 zone and Yes Bank also had caught up all the under performance, so I booked my profits there. One of my friend who is also good with technicals suggested me to start booking profits around those levels. I indeed missed 363-364 levels, but I got it all 4000 at 361. The call was sold at 19 rupees profit and futures at 31 rupees profit. The total gains from this trade was about 1,12,000 which is close to 28% on my base amount of 4 Lakh I had given to this trade.

There was a lot of luck involved in this trade as well. I bought it and the stocks only rallied from next day and gave me a hefty return. This kind of performance is not going to happen all the time because markets mostly remain rangebound and you cannot make a lot of money in this strategy if you find markets to be stuck in a tiny range. The current condition of the market is something like that and thus my second trade has not yet given me anything.  You might be languishing around for weeks and suddenly one week you’ll see a good jump in your gains. If you’ve done your buying at a reasonable level, you’ll eventually make money, all you need is patience and the right strategy. I will be posting another update at the end of July and share the trades that are done after Mid July.

The current status of the fund is 512,000, up 112,000 or 28% on the investment value.

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