Monthly Income with Options (and/or Futures and/or Equity)

[pannet1]

Hi,

I have in search of a Monthly Income Plan (not necessarily fixed ) and wanted to ask you if there is a (Option and Future) Strategy that can have limited profit (around 3%) every month.

Some may argue that there is no strategy that will be profitable every month, then the profit on the other months should be able to cover the loss making month.

I also thought of one plan.

Buy/Sell Near Month Future
Sell Call/Put OTM Near Month
Buy Put/Call ATM Current Month

Hold till Current Month Expiry if Futures is in Loss. Profit Premium Collected + difference collected by covering the Sold Call/Put.

Hold till Far Month Expiry if Futures is in Profit. Profit is the points moved by Futures - Sold Call/Put Premium.

Please advise if whether I have missed out anything and if this will work out either way.

Thanks for your guidance.

Experts are welcome to contribute to this thread.

 

[tradedatrend]

On what ground you will choose whether are you are going to Buy Future or Sell Future ?

Other things will come into picture only then

 

[pannet1]

Hi tradedatrend,

Buy Futures Collar when the trend is up.
Sell Futures Collar when the trend is down.

Thanks for your keen interest.

I picked up this strategy from here.

 

[pannet1]

Idea #2:

Another idea is to enter into a low risk Iron Butterfly. There is possibility to make adjustments to the trade.

 

[pannet1]

Idea #3: Iron Condor

 

[pannet1]

Idea #4:
You need some cash for this. Buy a "Credit Put Spread" of bullish stock. If you are forced to exercise at expiry then you got a Bullish stock in your portfolio. If you are not assigned with the stock you keep the Credit.

The next month, after being assigned with the stock enter into Zero cost collar. If the price moves above your Sold Call Strike then sell the stock you were holding. If the price goes below the Put strike then keep the amount at expiry

 

[goldenedge]

I dont have to read your post completely to disregard it as a 'bad' strategy.

 

[pannet1]

I dont have to read your post completely to disregard it as a 'bad' strategy.

hi goldenedge,

I am not telling anything new but some here do not have time to trade and or part time traders. I believe that they will be curious to know of such strategies.

I already made it clear its not a fixed income strategy. So can you please explain your comment please.

 

[tradedatrend]

Buy Futures Collar when the trend is up.
Sell Futures Collar when the trend is down.[/URL]

If you can recognize the trend then you can trader in an even simpler way


When you think Trend is Up, Buy 1 lot ATM CE, and Sell 1 OTM CE of as far as you think this Uptrend can go\

When you think Trend is Down, Buy 1 lot ATM PE, and Sell 1 OTM PE of as far as you think this Downtrend can go

 

[pannet1]

Hi tradedatrend,

the problem with this approach is it makes me nervous is there is a retrace. Yesterday in the Bank Nifty chart the last 4H candle triggered a uptrend. Assume I have entered like you said today there was a big gap down and as such (mental) SL was triggered and thus trend changed to downtrend. Well this could be because of Brexit but such things are common. May be one should target 100 point and not 500 points.

Also his requires watch the chart all the time.

If you can recognize the trend then you can trader in an even simpler way


When you think Trend is Up, Buy 1 lot ATM CE, and Sell 1 OTM CE of as far as you think this Uptrend can go\

When you think Trend is Down, Buy 1 lot ATM PE, and Sell 1 OTM PE of as far as you think this Downtrend can go