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

[vchugh16]

Dear Arnav, What abt covered calls for October series

 

[rahul1983]

Arnav Sir

how about writting 3800 C and 4500 P ( 391 + 415 ) in premium ???

 

[arnav_rulz]

Arnav Sir

how about writting 3800 C and 4500 P ( 391 + 415 ) in premium ???

ahh then your range becomes 3700-4600 and close btw 3800-4500 u earn 10,000 @ max.

The range is quiet tight especially for this month, caz this is going to be the breakout month for me...

 

[arnav_rulz]

Dear Arnav, What abt covered calls for October series

srry mate didnt get ya ...

 

[rahul1983]

ok Arnav, so according to you which CALL and PUTS should we writte today in October Series

and seat tight for next 15-20 days and just eat the premium ???

can you provide a 200 % SAFE STRATEGY where we earn 10 - 15 % return
on capital employed on monthly basis

just one trade or max 2 trades per month ??? can ya

 

[rahul1983]

1 more Question

what if we sell 4100 STRADDDLE ( 4100 P + 4100 C )

and what if we buy 4100 STRADDLE ???

since u said Oct is the breakout month we either go
to 3700 -3800 ot we go to 4600 - 4700

so will it not be to buy or sell a straddle of 4100 or 4000 or 4200

plz advise awaiting ur response

 

[bandlab2]

ok Arnav, so according to you which CALL and PUTS should we writte today in October Series

and seat tight for next 15-20 days and just eat the premium ???

can you provide a 200 % SAFE STRATEGY where we earn 10 - 15 % return
on capital employed on monthly basis

just one trade or max 2 trades per month ??? can ya

In a volatile market, premium fluctuates a lot on both sides. so eating premium is soewhat dificult. for that market has to be dull, range bound. but lot of pl are expecting market to break out of this zone. most likely on down side.

there is nothing like 200% safe. not even 100% safe. its risk reward ratio. also 15% return on monthly basis is asking for too much. you can write covered calls on your portfolio stocks. but dont expect 10-15% return. if you have 75 reliance stocks, sell 2220 call at 32 rs and collect 2400 rs. if relaince doesnt go beyond 2220, you can keep this money. 2400 rs on 1.51 lakhs. do your math

 

[rahul1983]

what if we sell / buy 4100 STRADDDLE ( 4100 P + 4100 C )

and what if we buy 4100 STRADDLE ???

since u said Oct is the breakout month we either go
to 3700 -3800 ot we go to 4600 - 4700

so will it not be to buy or sell a straddle of 4100 or 4000 or 4200

 

[arnav_rulz]

*srry edited ...

 

[arnav_rulz]

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

Im srry bandlab, but i guess your broker does not follow the Nse Rules....

1)You dont have to pay margin on covered Calls...

I.e you u sell 2 out of money calls and buy 1 At the money call, your total premium = (normal market for 1 blank call sold + only 3% for the other1 because it is covered...)

2)Margin is 25% are you kidding me ?

Only is volatile or maybe normal future Stocks margin = 25% otherwise for nifty margin is only 10-14%(that too caz these days its more volatile...)

3)i have mentioned this earlier too that its not necessary that you give all your margin in cash .... (most ppl have long term stocks, and instead of keeping them aside in the demat account, why not give it as a margin and try to make full use of them.

4)Earning say 10-20k average Every Month with your long term stocks worth 2 lakh only (which are otherwise idle) is a return of 5-10% monthly while taking very less risk is not a bad deal according to me...


If you feel i am wrong somewhere... plz do tell me ..