Comfortable profits from trading Nifty.

[jamit_05]

Update

Position 1:

27-Mar-14 6100 146.2
27-Mar-14 6100 76.45
26-Feb-14 6300 -3.85
26-Feb-14 5900 -4.7

Net Credit: 214;


Position 2:

27-Mar-14 5800 -19.95
26-Jun-14 6000 271

Net Credit: 251

 

[jamit_05]

Max OI for Feb is for
6000 PE
6200 CE

So, one can be pretty sure that for Feb the market won't go below 6000.

 

[bearish.bull]

Max OI for Feb is for
6000 PE
6200 CE

So, one can be pretty sure that for Feb the market won't go below 6000.

I have started building positional shorts for March. Bough 6200PE at 119 today, will average at 79 and then at 39 if the latter comes. Just wondering if there is anything I should watch for that could keep the markets above 6200 next month. If so, then instead of averaging I would hedge.

 

[jamit_05]

I have started building positional shorts for March. Bough 6200PE at 119 today, will average at 79 and then at 39 if the latter comes. Just wondering if there is anything I should watch for that could keep the markets above 6200 next month. If so, then instead of averaging I would hedge.

Interesting. Anyhow, the chart looks bullish till Monday low is not damaged.

 

[jamit_05]

Update

Position 1:

27-Mar-14 6100 146.2
27-Mar-14 6100 76.45
26-Feb-14 6300 -3.85
26-Feb-14 5900 -4.7

Net Credit: 214;


Position 2:

27-Mar-14 5800 -19.95
26-Jun-14 6000 271

Net Credit: 251

27-Mar-14 5800 -19.8
26-Jun-14 6000 289.6
Net: 270

27-Mar-14 6100 139.25
27-Mar-14 6100 78.7
26-Feb-14 6300 -2.7
26-Feb-14 5900 -4.1
Net: 211

 

[jamit_05]

27-Mar-14 5800 -19.8
26-Jun-14 6000 289.6
Net: 270

This position is more volatile due to it being directional. I now look forward to shorting the other side as well.

Short June 61CE 486
Long Mar 63CE 46

Net Credit: 440;

This gives a total credit of 710 for both sides. This won't wear-down till there is a 200 point fast move. Then, adjustment will be required.

 

[jamit_05]

This position is more volatile due to it being directional. I now look forward to shorting the other side as well.

Short June 61CE 486
Long Mar 63CE 46

Net Credit: 440;

This gives a total credit of 710 for both sides. This won't wear-down till there is a 200 point fast move. Then, adjustment will be required.

Net credit has climbed:


Short June 60CE 545
Long Mar 63CE 48

Net Credit: 497;

A 50 point gain... 60CE is having almost 1 delta.

 

[jamit_05]

Will wipe the slate clean, and follow only one position and learn from it.

Straddle:

Short: 60Jun 544+276-= 820
Long: 65CE+55PE Apr = 52
Net credit: 768;

Worst Case. Market Zooms over 6500 and makes us pay margin money till April End. And April expires at 6500, that will probably leave me with a little loss. This happens but rarely. In every other case, time decay will be on my side.

 

[jamit_05]

Will wipe the slate clean, and follow only one position and learn from it.

Straddle:

Short: 60Jun 544+276-= 820
Long: 65CE+55PE Apr = 52
Net credit: 768;

Worst Case. Market Zooms over 6500 and makes us pay margin money till April End. And April expires at 6500, that will probably leave me with a little loss. This happens but rarely. In every other case, time decay will be on my side.

Comparing it with:

Short: 60Jun 544+276-= 820
Long: 64CE+60PE Apr = 67+67=134

Net Credit: 686;

For a 80 point less credit, we get to bring the wings closer by 100 points for CE and 500 for PE... not bad, trading 80 points for 600!

I will place the trade for the later, towards the days end.

 

[jamit_05]

Considering another Spread, similar to which gmt has placed

Short
June 7000 CE @ 125
June 5500 PE @ 132
Total Credit: 257;

-----------
Apr 7000CE and 5500PE are quoting at 3.50 and 12, respectively. Hence, I can assume with some accuracy that this will be my cost of buyback of June contracts two months down the line. 240 points of potential profits in two months.

Our threat comes from only one fact, that if a strike becomes ATM quickly. To remedy that lets spend 15 points and buy same strike Apr contracts.

Tks GMT for bring it up.