Comfortable profits from trading Nifty.

[jamit_05]

Hv converted the losing positions into Bull Call spreads, which I will get out of as soon as steam is lost...

Got out of the bull calls, sparing one, to clear most losses.

 

[jamit_05]

Trade:

SOLD 65-June Straddle:
Premium Collected: 436+290=726;

Intend to hold it for some months. Will update it when adjustments are made.

 

[jamit_05]

Trade:

Spot 6550;
SOLD 65-June Straddle:
Premium Collected: 436+290=726;

Intend to hold it for some months. Will update it when adjustments are made.

Update:
Spot 6550
65-June Straddle:
Current Premium: 421+283=704;

No loss registered, no adjustments done.

Rule:

If Loss > premium received from ATM June
Then Will adjust
Else no action.

 

[sanjeev258380]

Must be u having unlimited funds...gud to see u in tj

 

[jamit_05]

After much discussions with like minded people, I have decided to give high risk-mediocre returns strategies a pass... (duh, right!)

Another concoction that looks promising...

Sell May 66 Straddle
Buy Apr 68CE/64PE wings
--------------------
Net Credit approx 490;

Estimates:
Current Cost of 66 Apr straddle is 270;
Hence, est time decay in the next 30 days is around 490-270=220 pts

Surely, volatility could do damage. Since we have 220 pts we ought to use some of it to purchase insurance. That, I feel, is the most important part.

 

[jamit_05]

The Iron Condor is in place:

Sold 66 May = 344+275
Bout 64+68 Apr = 55+62
==================
Net Credit = 500

Since, wings are on both sides damage is limited, while I expose 500 points to time decay till Apr expiry.

 

[jamit_05]

For a shorted Condor, trend is not a friend. So lets see what steps we can take to make gains if market trends.

1) If one wing is touched, say 68, we take a bullish stance, like buying OTM CEs or call spreads. Till then, do nothing. I find this more suitable as the price has run-up already, and could even correct to 6400 or go sideways till election results

2) Buy more Wings of 68/64, but of current month. This is more suitable when there is steam left in the trend, unlike right now.

 

[gmt900]

After much discussions with like minded people, I have decided to give high risk-mediocre returns strategies a pass... (duh, right!)

Another concoction that looks promising...

Sell May 66 Straddle
Buy Apr 68CE/64PE wings
--------------------
Net Credit approx 490;

Estimates:
Current Cost of 66 Apr straddle is 270;
Hence, est time decay in the next 30 days is around 490-270=220 ptsSurely, volatility could do damage. Since we have 220 pts we ought to use some of it to purchase insurance. That, I feel, is the most important part.

I am not sure whether this assumption is right.

 

[gmt900]

After much discussions with like minded people, I have decided to give high risk-mediocre returns strategies a pass... (duh, right!)

Another concoction that looks promising...

Sell May 66 Straddle
Buy Apr 68CE/64PE wings
--------------------
Net Credit approx 490;

Estimates:
Current Cost of 66 Apr straddle is 270;
Hence, est time decay in the next 30 days is around 490-270=220 pts

Surely, volatility could do damage. Since we have 220 pts we ought to use some of it to purchase insurance. That, I feel, is the most important part.

The idea seems to be collecting more points by shorting far month straddle and buy cheaper insurance by buying near month OTM options.

In theory sounds good.One needs to implement and find how it works in practice.

 

[Somatung]

The Iron Condor is in place:

Sold 66 May = 344+275
Bout 64+68 Apr = 55+62
==================
Net Credit = 500

Since, wings are on both sides damage is limited, while I expose 500 points to time decay till Apr expiry.

Sir Jamit_05

This is no iron condor. IN NO WAY. Please inform your self here what an Iron Condor is: http://www.theoptionsguide.com/iron-condor.aspx

If you not would use long legs from an other month, it would be an Iron Butterfly: http://www.theoptionsguide.com/iron-butterfly.aspx

As you now use long legs from an earlier months series, you have a short MAY straddle and you have a long APR strangle. Most likely you can call this a call calendar spread and a put calendar spread. Have a nice evening