NIFTY Options Trading by RAJ

[premkumartalreja]

I have a 3 Lac cash investment which I am using as follows
Shorted 125 2000 TCS Put at 22.10 as Cash secured put. I will buy the TCS at 1978 on expiry day if these Options go in the money. I have the 3 lac cash for this. I can pledge this and get the margin later for trading.
Shorted Nifty Strangle Sold 100 6000 Put @ 18.90 and 100 6500 call @ 51.80
Shorted Nifty Straddle Sold 150 6300 Put @ 81.80 and 150 6300 call @145.43
Shorted Strangle with Bullish Bias sold 150 6200 Put @ 51.75 and 6500 call @ 52
Total Margin paid is 3 lac. Max payout for Nifty at 6300 51 k ans TCS above 2000 is Rs 2700.
Upper Break even 6560 lower break even 6070.
Thanks for reading my strategy.

 

[gmt900]

I have a 3 Lac cash investment which I am using as follows
Shorted 125 2000 TCS Put at 22.10 as Cash secured put. I will buy the TCS at 1978 on expiry day if these Options go in the money. I have the 3 lac cash for this. I can pledge this and get the margin later for trading.
Shorted Nifty Strangle Sold 100 6000 Put @ 18.90 and 100 6500 call @ 51.80
Shorted Nifty Straddle Sold 150 6300 Put @ 81.80 and 150 6300 call @145.43
Shorted Strangle with Bullish Bias sold 150 6200 Put @ 51.75 and 6500 call @ 52
Total Margin paid is 3 lac. Max payout for Nifty at 6300 51 k ans TCS above 2000 is Rs 2700.
Upper Break even 6560 lower break even 6070.
Thanks for reading my strategy.

VIX is at multimonth low. May not be the most opportune time for selling options, especially straddle.

 

[premkumartalreja]

VIX is at multimonth low. May not be the most opportune time for selling options, especially straddle.

Agreed there is a risk of VIX Going up my logic for entring today is as follows

1. Waiting for few more days I will loose theta ( Time value )
2. Low Vix Means Range bound or Bullish which my strategy has taken care of.
3. I want to run options as business , run these strategies rain or shine month on month to generate annual income. My target is 7 % return per Month averaged over a year.
4. No major news coming during this month so risk is low

 

[premkumartalreja]

Agreed there is a risk of VIX Going up my logic for entring today is as follows

1. Waiting for few more days I will loose theta ( Time value )
2. Low Vix Means Range bound or Bullish which my strategy has taken care of.
3. I want to run options as business , run these strategies rain or shine month on month to generate annual income. My target is 7 % return per Month averaged over a year.
4. No major news coming during this month so risk is low

Upper Break even Point Probability ( at Current VIX ) : 20 %
Lower Break even Point Probability ( at Current VIX ) : 19 %

So I am around 1 Standard Deviation

 

[premkumartalreja]

Upper Break even Point Probability ( at Current VIX ) : 20 %
Lower Break even Point Probability ( at Current VIX ) : 19 %

So I am around 1 Standard Deviation

I can see that the calls are being sold lower than the theoretical value. any idea why ???

NSE Value Th Value VIX Strike Price
563.000 575.56 0.149 5800
470.000 479.50 0.149 5900
379.000 387.00 0.149 6000
292.000 300.56 0.149 6100
213.900 223.07 0.149 6200
146.000 157.19 0.149 6300
91.950 104.57 0.149 6400
52.300 65.37 0.149 6500
25.900 38.27 0.149 6600
11.100 20.92 0.149 6700
4.550 10.67 0.149 6800

 

[funkyvaib]

I can see that the calls are being sold lower than the theoretical value. any idea why ???

NSE Value Th Value VIX Strike Price
563.000 575.56 0.149 5800
470.000 479.50 0.149 5900
379.000 387.00 0.149 6000
292.000 300.56 0.149 6100
213.900 223.07 0.149 6200
146.000 157.19 0.149 6300
91.950 104.57 0.149 6400
52.300 65.37 0.149 6500
25.900 38.27 0.149 6600
11.100 20.92 0.149 6700
4.550 10.67 0.149 6800

Premji

One question - from where have you calculated these theoretical values? can you please share that excel with us if its ok with you?

Regards

 

[bapu4]

Hi Premkuarji,
Today/Y'day I had a query for you,I hope you have seen it..Pl. do reply at your ease.
http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-393.html#post918028
GBU

 

[premkumartalreja]

Hi Premkuarji,
Today/Y'day I had a query for you,I hope you have seen it..Pl. do reply at your ease.
http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-393.html#post918028
GBU

What's the problem you having with options oracle ?

 

[bapu4]

Hi Premkumarji,
Thanks,
how to put Indian stock's symbols in it? I put AXISBANK and AXISBANK.NS But
nothing is happening actually I had started the tutorial in that it asked me to put symbol yesterday Night.
GBu

 

[babumehta]

What's the problem you having with options oracle ?

dear prem ji..oat is showing weak beer for tcs. but it went up 3.5%. its good to short it ?