Comfortable profits from trading Nifty.

[Somatung]

Tracking May 6300 strangle.

356+320=676;

Short MAY Strangle or Short MAY 6300 Straddle? A few post back you told about Short MAY 6300 Straddle and now it is Short MAY Strangle. Sorry, but I get confused the way you post your legs or your thought about possible legs. If I missed the point/post which clears this, I do apologize.

 

[jamit_05]

Short MAY Strangle or Short MAY 6300 Straddle? A few post back you told about Short MAY 6300 Straddle and now it is Short MAY Strangle. Sorry, but I get confused the way you post your legs or your thought about possible legs. If I missed the point/post which clears this, I do apologize.

got ahead of myself there... as you rightly said.. it is a straddle.

Following May 6300 straddle, waiting for an uptide to get in.

Currently, at 650. It lost 25 points yesterday. So I guess now is not a good time to short 'em.

 

[jamit_05]

As a follow-up of the thought process, hv sold

100 units of 63/62 @ 74/57;

SL is 10%. Rs.1300; 13 points.

My expectation is that the price will touch Daily e15 and then come back up, spending atleast 3 days and a weekend in the process.

Today is the 4th day and this pair is still at 130. I am expecting a 10 odd point dip pretty soon.

 

[jamit_05]

As a follow-up of the thought process, hv sold

100 units of 63/62 @ 74/57;

SL is 10%. Rs.1300; 13 points.

My expectation is that the price will touch Daily e15 and then come back up, spending atleast 3 days and a weekend in the process.

Yesterday was memorable as far as price movement is concerned.

Lets see how our current month strangle behaved.

63/62 is @ 95/38 = 133;

Tks to theta, we are still near breakeven, SL not hit. Now, I expect the price to do uninteresting stuff for the next 7 days.

If that is not the case, then as soon as the SL is hit, I will take preventive action to cover for the sold 63CE.

So no action on this pair, inspite of such a huge move.

 

[jamit_05]

Preventive action would be:

1) Buy 6350 at 71, sell 6400 at 48; For a cost of 23 points I hv insurance till 6400. Would still have around 110 points in collected premium, out of which I will lose 50 points in case expiry is above 6300.

 

[jamit_05]

Tracking May 6300 strangle.

356+320=676;

Jeezz... May 6300 strangle is falling like a rock... 623. And the skew is on the higher side... 360+263

Inspite of a 150 point move since, the 63CE has not appreciated much. It seems to be a resistance.

 

[jamit_05]

As a follow-up of the thought process, hv sold

100 units of 63/62 @ 74/57;

SL is 10%. Rs.1300; 13 points.

My expectation is that the price will touch Daily e15 and then come back up, spending atleast 3 days and a weekend in the process.

Took preventive action.

Shorted Apr 6300 PE 100 units @ 101
Prev:
Shorted March 63/62 at 132.

 

[jamit_05]

Took preventive action.

Shorted Apr 6300 PE 100 units @ 101
Prev:
Shorted March 63/62 at 132.

63/62 March @ 130
63 April @ 92.4

total: 222.40

Total Collected: 132+101 = 233;

So, far it looks good. There is a strong possibility of gaps due to election season and hence it will be challenging to manage this position. But, isn't that the reason why we are doing this exercise, to strengthen the nerves.

 

[Somatung]

Jeezz... May 6300 strangle is falling like a rock... 623. And the skew is on the higher side... 360+263

Inspite of a 150 point move since, the 63CE has not appreciated much. It seems to be a resistance.

Yes, I have seen this, as this is also under the watch list. Nice red colors on the - on both sides. By the way: Did you also take your effort to watch the originally recommended short MAY strangle, which I posted a few days ago? The strangle which collected the same amount like your short straddle did (5 MAY 7100 short calls and 5 MAY 5500 short puts) The result and the risk of those two trades until today you have to analyze. Guess you will enjoy it, as I see you love option trading.

An other one on my watch list is the following one, which may also interests you (Sir Escape is trading this one):

MAR/APR Horizontal Calendar Spread: Short MAR 6200 call @ (135.00) / Long APR 6200 call @ (190.00) This are the original prices which are posted. Sir, watch the current prices and also here you will get an interesting picture about it.

 

[jamit_05]

MAR/APR Horizontal Calendar Spread: Short MAR 6200 call @ (135.00) / Long APR 6200 call @ (190.00) This are the original prices which are posted. Sir, watch the current prices and also here you will get an interesting picture about it.

The May strangle turned out well. However, the Horizontal Calendar Spread is a point of worry due to the following reason:

Say March expires at 6500 as daily trend is nicely up.

Then the shorted Mar 6200 will expire ITM causing a damage of 300 points
The Long APR 62CE will decay by 70 points.

Against a gain of 135 points in collected premium.

Net loss: 235 points at march expiry. I fail to see the bright side.