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

[pannet1]

what did you trade in 6 years to burn 5 lakhs , options ?

Started with Commodity (Broker India Infoline), then Forex (not INR pair), then Options (Kotak Bank) and now Options (Zerodha).

Major part of the burning happened in Forex because I had more capital at the time So basically the market is not be blamed.

The Kotak episode was pretty much recorded in my diary. I did call and trade with my sub broker because Kotak did not guide me properly to install the software. I was not able to login with username and password they gave. After breaking my head with their IT team for several day, calling their call centre frantically nothing happened. Then only they realised that my id is not created.

Then the call and trade went bad because by mistake i told the girl to Buy an option 1000 strikes away with poor spread.

Phew

 

[doonyadav]

Just for study purpose:
Can we short 9000 CE March = 111.45 one lot
and 8800 PE March = 79.20 one lot
Total Premium = 190.65*75 = 14300 approx

Keep aside margin for buy/ sell 1 lot future if goes above 9000 or below 8800

total premiun =14300
Capital deployed = 150000
profit % = 9.5%
brokerage and slippage = 2.5%
Net gain = 7%

please tell the weakness of the strategy

 

[Subhadip]

Just for study purpose:
Can we short 9000 CE March = 111.45 one lot
and 8800 PE March = 79.20 one lot
Total Premium = 190.65*75 = 14300 approx

Keep aside margin for buy/ sell 1 lot future if goes above 9000 or below 8800

total premiun =14300
Capital deployed = 150000
profit % = 9.5%
brokerage and slippage = 2.5%
Net gain = 7%

please tell the weakness of the strategy

Nice, but do u know the Delta & Vega...

Do u know in between there may be fluctuation,

Price going up then coming down, then going up again..

How to handle the situation???

Do u know that??

 

[doonyadav]

idea is to buy NF above 9000 and sell below 8800 to manage the risk.
70% chances are that we will loose some point in slippage due to whipshaw that is already considered. 1-2 months in a year whipshaw may eat entire premium.

Please advice!

 

[pannet1]

idea is to buy NF above 9000 and sell below 8800 to manage the risk.
70% chances are that we will loose some point in slippage due to whipshaw that is already considered. 1-2 months in a year whipshaw may eat entire premium.

Please advice!

hi doonyadev,

you may be successful but who can afford to sleep with fear every night that it may gap or gap down the next day.

if you the luxury of full time for trading checkout senior member linkon's thread.

another view is to start delta / vega neutral and taking out the difference as profits and readjust.

something similar is youtube user "Great Option Guru"s strategies. check out that too.

the key to success is remain hedged overnight and use your trading skills intraday IMHO.

there is nothing new to invent in options. everything is already said. just find out the one that suits your trading time, style, comfort level etc.

 

[dalvipp]

Thank you Pennet1. Correctly said find out the strateji which suits you.
Do paper trade, home work. All the best wishes to doonyadav.

 

[pannet1]

For the lazy who cannot click like below signature like me.

coutesy: FreeImageHosting.net

 

[pannet1]

I was trying to swap the sold monthly with the new weekly lower strike put. after some 10 points gain it was sliding down rapidly. closed it for a small loss and again sold another monthly two strikes below.

courtesy: freeimagehosting.net

 

[pannet1]

I began the 1st day of the month with negative carried forward from Feb expiry.

Nevertheless, you can expect the Red above to turn Green by the end of the month.

 

[pannet1]

updated excel sheet