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

[arnav_rulz]

Im Srry for the delay in the replies...

My net isnt working for past 2-3 days and thus couldnt upadate ...

Im sitting in a cybercafe right now where the net is really slow, will try and reply to your queries as soon as my net starts working ...


cheers

 

[arnav_rulz]

4)above or below that but less than 4900 and 4000 expect profits upto 40k !! not 40 maybe but definetly 25-30k is possible...

can you explain this clearly ? since this is where max profit comes from. your wording is confusing. always use numbers so that others can clearly understand. for example, you can give a range and tell what could be max profit/loss

pl tell what happens when nifty closes

above 3800 below 4000

above 4000 below 4400

above 4400 below 4600

above 4600 below 4800

above 4800 below 5000

above 5000

below 3800

thanks for the strategy

3600- -20,000
3700- -10,000
3800- 0
3900- 10,000
4000- 20,000
4100- 30,000
4200- 20,000
4300- 10,000
4400 - 0
4500 - 0
4600 - 0
(Although in case market is near 4400-4600 we would square off all our positions 7 days before expiry and should earn atleast 7000 between 4400-4600)
4700- 10,000
4800 - 20,000
4900 - 10,000
5000 - 0
5100 - -10,000 and so on ...

 

[arnav_rulz]

Dear Arnav_rulz,
I worked out in detail your suggestions. I don't at all figure out how you've arrived at the 10K figure. In fact, after putting up the margin money for writing 4 lots, the best case scenario that I see from my tables is about 5k (maximum), that is if you foreclose some of your positions in the no-gain range. Have I missed out something or am I making a mistake somewhere?!
[Some assumptions I have made are (a) entry is at about 40 days ahead and selective sq off is at 10 days to expiry, (b) the IV is range-bound.]

Well i didnt get you completely, what i think you were asking me was that if say, the market was 4500, 10 days before expiry... How would we manage to earn 10k, right ?


Well 1st assumption, Im trading in 100/200 nifty.

2nd, its assumed that, when nifty is trading @ 4500, 10 days prior to expiry ... then at that time ...

4400 Put would trade something around 75-80
4100 Put would trade something around 15-20

So if we would square off both 4400 & 4100 puts we could earn around 4-5k

Similarly when we square off 4600 & 4800 call we could earn about 4-5k then We Could manage to earn about 10k if nifty trade between 4400-4600....

*If 10 days prior to the market, say we are bullish and do not expect heavy downside, then what is can do is square off 4400 Put @ 75(ie earn 7500)
Let the 4100 puts and 4600&4800 Calls remain there...(vice versa if we are bearish)

This way if the market moves according to our way and say closes @ 4700, then we could earn 10,000 + 7500 (from 4400 Put) ie 17,500.

And in case, the market falls but manages to close above 4100, even then we would earn 7500.

I hope ive cleared your doubts , if you didnt get anything do ask me again

 

[arnav_rulz]

** Ive got an alternative Wi-fii net right now although its slow.... But i guess i can Still manage again to be a part of discussions now !

Looking forward for any other queries .... or opinions !

 

[marcus]

Hello Arnav,

Thank you for sharing your strategy and taking the time to answer all our members questions so patiently and painstakingly.

I would just like to ask you who is your broker? The reason is my brokers none of them give reduced margins in case of trading spreads. If I sell a single option or n number of options the full margin is blocked even if i cover my position by buying futures/options or any combination of them. I do not trade stocks anymore so i can not give it as collateral.

I would very much like to know who your broker is and what brokerage he is charging (flat or percentage) for options who is giving you the benefit of reduced margins for options spreads.

Thank you.

 

[munde_77]

** Ppl who want to use my strategies .... Give me your Wildest Range For October and I will try and work out a Almost no Risk strategy for that range.


*Your range be as big as you want, but just be realistic to yourself and dont say non-practical range such as 3000-6000 lol.

Please give strategies for nifty between 4000 and 45000 for october month

 

[arnav_rulz]

The reason is my brokers none of them give reduced margins in case of trading spreads. If I sell a single option or n number of options the full margin is blocked even if i cover my position by buying futures/options or any combination of them.

Thank you.

aah My Broker is not giving me any additional benefits by not charging Additional Brokerage of Covered Calls because margins are charged as per Nse Rules. Its in the rules on nse that Margin On covered calls is only 3%.

ie, say if buy 1 futures and sell 1 call then you may normal margin of the Future you brought but you have to give only 3% margin on the call you sold ...

Btw my broker is Star Finvest a private broking firm...and i think you should talk to your broker about the margin thing and sought out your problem

 

[arnav_rulz]

Please give strategies for nifty between 4000 and 45000 for october month

i think you meant 4000-4500

Hmm you have a small range .... Better for you if you increase your range or tell me you are more bullish or bearish... ie for you is it more likely to break 4500 or 4000 so that i would try to protect that side for you...

ie if you are bullish - ie you think it can go above 4500 then i would try and make a range where you earn even if stays above 4500 but lose only if goes below 4000.


Or if you are bearish i can make range where your downside is protected more , that is maybe till 3700 or if you want something where you can even earn below 4000 ...

Kindly widen your range caz otherwise thrz a very simple strategy for you

Sell 4500 call and sell 4000 Put

 

[enggabhinandan]

*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

Buy 100 4600 PUT @ 285 .....total margin = 28500
Sell 200 4300 Put @ 135 .....total margin = 27000

Buy 100 4100 Put @ 75 .....total margin = 7500
Sell 200 3900 Put @ 37 .....total margin = 7400

Total Investment = 1500 Rs

All Buy = 28500 + 7500 = 36000
All Sell = 27000 + 7400 = 34400

All Buy - All Sell = 1600

so is this amount is ur investment.....

Is that means Buying a PUT/Call of strike price X at premium n and Selling a PUT/CALL of strike price Y at premium r .......needs a margin of (n-r)*mktlot

.......

 

[bandlab2]

Buy 100 4600 PUT @ 285 .....total margin = 28500
Sell 200 4300 Put @ 135 .....total margin = 27000

Buy 100 4100 Put @ 75 .....total margin = 7500
Sell 200 3900 Put @ 37 .....total margin = 7400

Total Investment = 1500 Rs

All Buy = 28500 + 7500 = 36000
All Sell = 27000 + 7400 = 34400

All Buy - All Sell = 1600

so is this amount is ur investment.....

Is that means Buying a PUT/Call of strike price X at premium n and Selling a PUT/CALL of strike price Y at premium r .......needs a margin of (n-r)*mktlot

.......

you need margin ONLY for SELL, not for BUY. For buy you need to pay the premium, so you need some cash to buy. You receive some cash (premium) when you sell. so with this strategy, you need only 1600 rs as cash, but you need margin for 800 nifties. margin is around 25%. multiply 800 with 4300 and take 25% = 8.6 lakhs. check with yr broker, it may be less than 25%.. they dont do M2M on options on daily basis, but make sure you have more margin to cover the daily volatility. appx 10 lakhs margin is safe.

but what you get on 10 lakh margin ? 10k ? 20k ? 30k ? i think risk reward ratio is not favorable