Don't worry about the market,Earn regardless of where the market goes !!

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Hi,
Do you think its possible to get 4100 put at 270 and 3800 one at 250??? 20 rupee diff in strike prices 300 pts apart??? Pl let me know if you have practically traded any such strategy...i feel its good on paper..and in backtests. You will never get such prices in liquid options at the same time..

Pl do reply

Rakesh

I think i didnt make myself clear .... Im srry



**BUY 100 PUT Of Nifty(4100) @ 270

**Sell 200 Put of Nifty(3800) @ 125 {you sell 200 therefore you get back 250}

 

[rakeshluthra430]

Re: Don't worry about the market,Earn regarless of where the market goes !!

I think i didnt make myself clear .... Im srry



**BUY 100 PUT Of Nifty(4100) @ 270

**Sell 200 Put of Nifty(3800) @ 125 {you sell 200 therefore you get back 250}

My friend...the whole risk:reward strategy changes when u sell 200 instead of 100. Pl do a scenario analysis on Excel sheet....say from nifty 3000 levels to 5500 levels...and see the profit/loss at various levels.
And pl do post the results...

Thanks a lot for quick response,
Rakesh

 

[Smart_trade]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Hi,
Do you think its possible to get 4100 put at 270 and 3800 one at 250??? 20 rupee diff in strike prices 300 pts apart??? Pl let me know if you have practically traded any such strategy...i feel its good on paper..and in backtests. You will never get such prices in liquid options at the same time..

Pl do reply

Rakesh

He is selling 3800 puts 2 nos at Rs 125/- each collecting toatal premium of Rs 250/-.I find this ratio spread attractive.You can do similar ratio spread on "calls" Buy 1 call 3900 and sell 2 calls 4200.You are safe till 4500 on Nifty.

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

My friend...the whole risk:reward strategy changes when u sell 200 instead of 100. Pl do a scenario analysis on Excel sheet....say from nifty 3000 levels to 5500 levels...and see the profit/loss at various levels.
And pl do post the results...

Thanks a lot for quick response,
Rakesh

Dude as i said.... You would Be in loss If Nifty Closes Below 3500 IN JULY.

If you want the profits/losses @ various prices ill give u surely.

Consider Following Closes @ End of July


1)3200 - You lose 30,000
2)3300 - You lose 20,000
3)3400 - You lose 10,000
4)3500 - You lose 0
5)3600 - You receive 10,000
6)3700 - You receive 20,000
7)3800 - You receive 30,000
8)3900 - You receive 20,000
9)4000 - You receive10,000
10)4100 - You receive 5,000
11)4200 - You receive 10,000
12)4300 - You receive 15,000

*And so on, on every 100 point rise you gain 5,000 more.


*Also If Market comes to 3500 and you dont feel comfortable with Downward losses, you may square off your positions with minimum losses....

Hope this helps....

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

He is selling 3800 puts 2 nos at Rs 125/- each collecting toatal premium of Rs 250/-.I find this ratio spread attractive.You can do similar ratio spread on "calls" Buy 1 call 3900 and sell 2 calls 4200.You are safe till 4500 on Nifty.

The problem in that is that these days thr is very less Premium on Calls And thus you cannot recover most of the amount that you have invested thus increasing your investment.

For Eg.

Call of 3900 - 180
Call of 4200 - 70*2 = 140

Thus making your total investment of 4000.


**Therefore when you want to make an upper limit do it for the next month so that you could recover all your investment cause we want to invest the least possible amount.

 

[sikandar]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Ohk, Here is the strategy, It requires a lil bit more money than estimated Earlier.



**BUY 100 PUT Of Nifty(4100) @ 270

**Sell 200 Put of Nifty(3800) @ 250 {ie 2*125 each}


* Total Investment, 2000 Rs, Loss after Nifty goes belows 3500 in current Month. You Earn @ any close between 3500-4100 but do not lose above close of 4100.

** Buy 50 CALLS of Nifty(4000) @ 160

*Total Investment Rs. 8000, Upside Unlimited.... You just lose your investment on close of below 4000, which you would recover from your Puts...

What can we do
In the event of anyone exercising puts which sold?

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

What can we do
In the event of anyone exercising puts which sold?

In Nifty You cannot execute Puts or Calls....

 

[pasha]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Dude as i said.... You would Be in loss If Nifty Closes Below 3500 IN JULY.

If you want the profits/losses @ various prices ill give u surely.

Consider Following Closes @ End of July


1)3200 - You lose 30,000
2)3300 - You lose 20,000
3)3400 - You lose 10,000
4)3500 - You lose 0
5)3600 - You receive 10,000
6)3700 - You receive 20,000
7)3800 - You receive 30,000
8)3900 - You receive 20,000
9)4000 - You receive10,000
10)4100 - You receive 5,000
11)4200 - You receive 10,000
12)4300 - You receive 15,000

*And so on, on every 100 point rise you gain 5,000 more.


*Also If Market comes to 3500 and you dont feel comfortable with Downward losses, you may square off your positions with minimum losses....

Hope this helps....

Buying 1 cheap 3400 put now would limit the downside in the event of going below 3200
if 3400 was available.

 

[ARMHM]

Re: Don't worry about the market,Earn regarless of where the market goes !!

What can we do
In the event of anyone exercising puts which sold?

Nifty options are European style hence it can not be exercised before expiry.

 

[sudoku1]

Re: Don't worry about the market,Earn regarless of where the market goes !!

the biggest worry in options is the TIME DECAY....