Low Risk Options Trading Strategy - Option Spreads
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Hi Dan
Honestly, did not think of using puts for it. Investing just rs 75 as a debit, was what attracted me to this, the mental stop is set to 25 for a RR of 1.
Close yesterday was 182 & 102, and the variation for the nett debit has between 80-70 points so far, the sp4.8 call loses money faster than 4.9
Let me try and see how would i do the same with Put options? Do you mean Credit Spread?
Long Put 4800 @ 13.25 ; (16.25 @ 1400 hrs) ; (14.75 @ 1430 hrs) ; (13.75 @ 1500 hrs) ;
Short Put 4900 @ 35.00 ; (42.00 @ 1400 hrs) ; (38.75 @ 1430 hrs) ; (34.75 @ 1500 hrs) ;
Max Risk Close below 4800
Max Gain Close above 4900
Thanks
NT
Honestly, did not think of using puts for it. Investing just rs 75 as a debit, was what attracted me to this, the mental stop is set to 25 for a RR of 1.
Close yesterday was 182 & 102, and the variation for the nett debit has between 80-70 points so far, the sp4.8 call loses money faster than 4.9
Let me try and see how would i do the same with Put options? Do you mean Credit Spread?
Long Put 4800 @ 13.25 ; (16.25 @ 1400 hrs) ; (14.75 @ 1430 hrs) ; (13.75 @ 1500 hrs) ;
Short Put 4900 @ 35.00 ; (42.00 @ 1400 hrs) ; (38.75 @ 1430 hrs) ; (34.75 @ 1500 hrs) ;
Max Risk Close below 4800
Max Gain Close above 4900
Thanks
NT
Last edited:
Hi Dan
Honestly, did not think of using puts for it. Investing just rs 75 as a debit, was what attracted me to this, the mental stop is set to 25 for a RR of 1.
Close yesterday was 182 & 102, and the variation for the nett debit has between 80-70 points so far, the sp4.8 call loses money faster than 4.9
Let me try and see how would i do the same with Put options? Do you mean Credit Spread?
Long Put 4800 @ 13.25 ; (16.25 @ 1400 hrs) ; (14.75 @ 1430 hrs) ; (13.75 @ 1500 hrs) ;
Short Put 4900 @ 35.00 ; (42.00 @ 1400 hrs) ; (38.75 @ 1430 hrs) ; (34.75 @ 1500 hrs) ;
Max Risk Close below 4800
Max Gain Close above 4900
Thanks
Honestly, did not think of using puts for it. Investing just rs 75 as a debit, was what attracted me to this, the mental stop is set to 25 for a RR of 1.
Close yesterday was 182 & 102, and the variation for the nett debit has between 80-70 points so far, the sp4.8 call loses money faster than 4.9
Let me try and see how would i do the same with Put options? Do you mean Credit Spread?
Long Put 4800 @ 13.25 ; (16.25 @ 1400 hrs) ; (14.75 @ 1430 hrs) ; (13.75 @ 1500 hrs) ;
Short Put 4900 @ 35.00 ; (42.00 @ 1400 hrs) ; (38.75 @ 1430 hrs) ; (34.75 @ 1500 hrs) ;
Max Risk Close below 4800
Max Gain Close above 4900
Thanks
risk of 100 for a gain of 20 bucks.......is that OK?NT
Hi
No 4/5:1 RR is not ok. During the markets we can manage the risk by cutting the position if the price difference becomes unfavorable, we can set a mental stop with a RR of 1:1 i.e. 20-25 Rs in this case. Yes the overnight risk always will be there on debit call spread its max 75 and on credit put spread is max 100. Its much better than using futures for these kind of trades.
Its my first trade of this kind but there is so much to learn, the spreads vary during the day so much, today during the day it was fluctuating between 20-30, so if we are clear what we want we can initiate the position at more favorable points, averaging, scaling-in/out, legging in/out and much more can be done :thumb:
Cheers
No 4/5:1 RR is not ok. During the markets we can manage the risk by cutting the position if the price difference becomes unfavorable, we can set a mental stop with a RR of 1:1 i.e. 20-25 Rs in this case. Yes the overnight risk always will be there on debit call spread its max 75 and on credit put spread is max 100. Its much better than using futures for these kind of trades.
Its my first trade of this kind but there is so much to learn, the spreads vary during the day so much, today during the day it was fluctuating between 20-30, so if we are clear what we want we can initiate the position at more favorable points, averaging, scaling-in/out, legging in/out and much more can be done :thumb:
Cheers
I am a long term investor, putting my money with a horizon of 2-3 year. In this market I am since last 15-16 Years. but since last 2-3 years i start trading mainly in NIFTY. I try lot but could not get much success in Trading. after every try, finally I start shorting far way CE and PE for which I have to keep margin amount in my trading account along with MTM amount.
some one told me that If I will utilize margin amount which I can get against my long term portfolio, I have to keep only MTM amount in my trading account and the broker will not charge interest on margin amount which i am getting against my portfolio.
so I am just putting my query to all senior member that which brokering firm are not charging interest. so that i can get better deal with my broker.
although this is not the right forum to place this question, but hope senior member will reply,
some one told me that If I will utilize margin amount which I can get against my long term portfolio, I have to keep only MTM amount in my trading account and the broker will not charge interest on margin amount which i am getting against my portfolio.
so I am just putting my query to all senior member that which brokering firm are not charging interest. so that i can get better deal with my broker.
although this is not the right forum to place this question, but hope senior member will reply,
Hello
The minimum margin requirement (SPAN margin) are imposed by the exchanges and NSE allows shares as collateral for margin purposes. Brokers normally add to this SPAN margin and take a bit higher from their clients for extra safety (they are allow to do so
Most of the brokers accept Shares as a collateral for margin, usually there is a haircut depending on the share and the brokers policy (you may get 70% - 80/90% as margin against shares).
Just as an example Zerodha says they will allow you to bring in shares as 70% of the margin and 30% you will have to bring in as cash.
You will need to talk to different brokers to see what suits your requirements. No interest should be charged for this facility as it is quite legal to use collateral as margin, if anyone is doing so they are trying to benefit form our ignorance.
Thanks
NT
EDIT: You can invest a part of your cash margin in "LIQUID BEES" an money market ETF which is allowed by NSE to be used as 100% collateral.
The minimum margin requirement (SPAN margin) are imposed by the exchanges and NSE allows shares as collateral for margin purposes. Brokers normally add to this SPAN margin and take a bit higher from their clients for extra safety (they are allow to do so
Most of the brokers accept Shares as a collateral for margin, usually there is a haircut depending on the share and the brokers policy (you may get 70% - 80/90% as margin against shares).
Just as an example Zerodha says they will allow you to bring in shares as 70% of the margin and 30% you will have to bring in as cash.
You will need to talk to different brokers to see what suits your requirements. No interest should be charged for this facility as it is quite legal to use collateral as margin, if anyone is doing so they are trying to benefit form our ignorance.
Thanks
NT
EDIT: You can invest a part of your cash margin in "LIQUID BEES" an money market ETF which is allowed by NSE to be used as 100% collateral.
Last edited:
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