Why we sold only CE's today ?
A small 🧵
Collaborated with @AdityaTodmal
• BNF reversed from 32155 (low made on Mar'8)
• One side rally to butcher the CE writers
• Gap up opening by ~1300 points
• From Mar'8 low till today open ~2800 point rally
• 2800 point rally in just 1.5days
• Trend on the larger TF still bearish
• Due to election results we decided no to carry any overnight positions
• Selling PE on the back of 2800 point rally would have been disastrous due to unfavorable R/R
• So we were very clear to short only CE's
• But then need to follow the trend
• We decided to short CE at the break of first 5min candle
• By 9.45 it started to reverse
• Spotted M pattern at the resistance and started shorting CE's thereafter i.e. post 12.12 hours