Low Risk Low Returns- Target 50 NF per month per NF Lot

[preethnfo]

Can't we make a 100 NF points.

 

[jamit_05]

Can't we make a 100 NF points.

The main idea is to keep risk low. When that is done profit could be any number.

 

[jamit_05]

SOLD 6000 CE 50 Units @ 90

Gain 50 * 90 = 4500;

Why am I selling CE and not NF?
Cuz Nf profit is 50 points <<< cost of PE pair of 180. With this i open a win-win situation for myself:

If price goes up, with CE sold I get 100+90
If price goes down, I will sell PE pair and get a very good value.

 

[jamit_05]

6000 CE has come down to Rs.72, profit of Rs.18;

Looking forward, we will sell 20% of qty instead of regular 10% because the April month is going to be very slow.

 

[jamit_05]

6000 CE has come down to Rs.72, profit of Rs.18;

Looking forward, we will sell 20% of qty instead of regular 10% because the April month is going to be very slow.

Buying Back this 6000 CE at Rs.55 for profit;
Selling two lots of 5900 PE from Stock 2 @ 115 each.

Total Gain:

90-55 = 35*50 = 1750
115*100 = 11500

Total gain = 13250

Current Stock:
NF 10 Lots
PEs 18 Lots

 

[anup]

Hi Amit,

want to take straddle, Can you suggest the strike for taking straddle

 

[jamit_05]

Hi Amit,

want to take straddle, Can you suggest the strike for taking straddle

Buy the 5800 Long straddle. Cost approx 135. The chances of price going up are better. Therefore, from 5800 you are likely to get the best mileage out of the Straddle.

 

[jamit_05]

Hi Amit,

want to take straddle, Can you suggest the strike for taking straddle

If you want to further notch up the directional bias then:

For bullish : Buy NF as near to 5800 as possible, and 5800 PE Mar.
Total cost around 50 Bucks.
Return:150 points is sure shot if direction plays out. Else, max loss is Rs.50, or you may even get a chance to get out with minor damage.

 

[jamit_05]

Buying Back this 6000 CE at Rs.55 for profit;
Selling two lots of 5900 PE from Stock 2 @ 115 each.

Total Gain:

90-55 = 35*50 = 1750
115*100 = 11500

Total gain = 13250

Current Stock:
NF 10 Lots
PEs 18 Lots

5900 PE CMP 160; Losing 45*2 = 90*50 = 4500 Rs.

I will go ahead and bear this loss and recover the sold PEs. Now Stock is back to square one.

Current gain = 13250- 4500 = 8750;
Current Stock

NF 10 lots of 5936; CMP 5776; Loss 160 pts
5900 PEs 20 Lots @ 90; CMP 160; Gain 140 pts

 

[jamit_05]

SOLD 50 units NF @ 5776

LOSS: 5936 - 5776 = 160 Pts.


As market fall will sell a pair of PEs.