Nifty Option's trading.... Earn regardless of where the market goes !!

[arnav_rulz]

**Also looking @ high amount of margin required ... WE will Try our Best to NEVER Increase our open Positions ... (i.e our amount @ risk so that our margin doesn't increase because we have to be realistic ..

We will try and never have More than 6 open positions @ 1nce... From next time ill make a diff strategy and try to reduce more positions ....


*Right now i am trading in multiples of 100 & 200 just for the purpose of easier calculations... You could even trade in multiples 50 & 100 but try and keep the options brought & sold in the same proportion of the strategy given ...

 

[vangara_kris]

Can i take position tomorrow if so as i am not available online during mkt hrs (being me @ office n not possible) pl let me know how cud i know when to close/take position.
Krishna

 

[arnav_rulz]

Can i take position tomorrow if so as i am not available online during mkt hrs (being me @ office n not possible) pl let me know how cud i know when to close/take position.
Krishna

Ahh i would have to work on the strategy today (@ night)& make changes after seeing tomorrow's rates of calls & Puts ... So would be able to give call IF ANY, tomorrow at around 11am or so ...

 

[pasha]

*For the month of September...

Buy 100 4600 Put @ 285
Sell 200 4300 Put @ 135(i.e you get 135*2=270)


Buy 100 4100 Put @ 75
Sell 200 3900 Put @ 37(37*2 = 75 approx)

Total Investment = 1500 Rs


Also Sell 200 4600 Calls @ 65
& Sell 200 4200 Puts @ 100

Total Received = 33,000


Net Received = 30,000

With ref to this
>>Buy 100 4600 Put @ 285
Sell 200 4300 Put @ 135(i.e you get 135*2=270)<<

For every point below 4300, the holder will be losing twice whatever the 4600 put makes. It is equivalent to a directional bet above 4300, where every point above, is +1Rs and every point below is -2Rs

I do understand that the entire strategy is geared for minimal investment.

 

[arnav_rulz]

With ref to this
>>Buy 100 4600 Put @ 285
Sell 200 4300 Put @ 135(i.e you get 135*2=270)<<

For every point below 4300, the holder will be losing twice whatever the 4600 put makes. It is equivalent to a directional bet above 4300, where every point above, is +1Rs and every point below is -2Rs

I do understand that the entire strategy is geared for minimal investment.

Yes for every point below 4300 the holder will lose an extra point as compared to what he has gained from the 4600 put.

But if it is below 4300 then that means he has already gained 300 points (4600-4300) therefore he has a scope to lose 300 more points before to start making an actual loss.

Therefore, the holder earns from any close between 4600-4000, and doesnt lose a penny above 4600.... This means that the holder has a range for 600 points !!

I have also made a put of 4100 and 3900 so as to increase the bottom side.

But As i said earlier... tomorrow i may make a little change in the strategy because im a little bearish and want to add more depth to the bottom side ... so maybe we would square off the 4600 & 4300 Puts and change it to 4400 & 4100 Puts or maybe even 4500 - 4200 depending on the rates we get tomorrow...

 

[arnav_rulz]

2nd Strategy ...

Sell 200 4600 Calls @ 65 ( you may even see 100 calls& Puts)
& Sell 200 4200 Puts @ 100

Total Received = 33,000


From Tomorrow Onwards We may start squaring off some Puts & Calls and or add some other things too because im a little on the bearish side for now so would like to reduce our risk if the market goes down....

**But that doesnt mean we would start to short because thatz not the Purpose of the thread !! We Dont Do Any positional Trades !! We let the market go where ever it want to goooooo !!

Buy Back the 4200 Put that we sold @ 115..... Keep the 4600 Calls remained as Sold...

 

[pasha]

Yes for every point below 4300 the holder will lose an extra point as compared to what he has gained from the 4600 put.

But if it is below 4300 then that means he has already gained 300 points (4600-4300) therefore he has a scope to lose 300 more points before to start making an actual loss.

Therefore, the holder earns from any close between 4600-4000, and doesnt lose a penny above 4600.... This means that the holder has a range for 600 points !!

I have also made a put of 4100 and 3900 so as to increase the bottom side.

But As i said earlier... tomorrow i may make a little change in the strategy because im a little bearish and want to add more depth to the bottom side ... so maybe we would square off the 4600 & 4300 Puts and change it to 4400 & 4100 Puts or maybe even 4500 - 4200 depending on the rates we get tomorrow...

Below 4300, the buffer is 150 points not 300, because double the number of lower puts were sold. The entire position is equal to selling 1 naked 4150 put.

 

[arnav_rulz]

1st Strategy ....

Quote:
Buy 100 4600 Put @ 285
Sell 200 4300 Put @ 135(i.e you get 135*2=270)

Total Investment = 1500 Rs

Sell 100 4600 Put @ 350
Buy 200 4300 Put @ 162(162*2 = 225)

Total received = 2500.

Now

buy 100 4400 Put @ 215
Sell 100 4100 Put @ 87(87*2 = 175)

Total invested = 4000


*Doing this just to protect the downward risk ....

 

[arnav_rulz]

Below 4300, the buffer is 150 points not 300, because double the number of lower puts were sold. The entire position is equal to selling 1 naked 4150 put.

aah no.... as market goes down from 4300 we lose 2 points from 4300 Put but side by side earn 1 point from 4600 Put.

Therefore we lose 1 point with every 1 point below 4300, but as we have already gained 300 points we have a 300 point safety margin ..


See @ 4000 we are break even because

We gain 600 points from 4600 Put & lose 300*2=600 from 4300 Put ...

 

[pasha]

aah no.... as market goes down from 4300 we lose 2 points from 4300 Put but side by side earn 1 point from 4600 Put.

Therefore we lose 1 point with every 1 point below 4300, but as we have already gained 300 points we have a 300 point safety margin ..


See @ 4000 we are break even because

We gain 600 points from 4600 Put & lose 300*2=600 from 4300 Put ...

You are right, I did not calculate the points already gained from the 4600 put.