Nifty Options Vertical Spread Trading

[ananths]

Spread #3 Dt - 23/09/2013

Covered the position today

OCT5900PE @ 129 (153) = +24
OCT5800PE @ 100 (118) = +18

Net P/L = +6 Points


Result for the month of Sept,
Spread #1 = +10
Spread #2 = +17
Spread #3 = +6

Total = +33 Points per lot :thumb:

 

[gmt900]

Hi gmt900,

Congrats for the successful trade today...great!

I could not understand how this butterfly spread will give 4,550 profit (Edit:- sorry..I guess you are calculating for 2 lots)
I just checked in options oracle and here is the result,

http://imageshack.us/photo/my-images/46/8ccu.png

http://imageshack.us/photo/my-images/826/oi12.png
Please correct me if my understanding is wrong. :thumb:

Hi Ananth,
I cannot upload OptionsOracle image since I can't figure out how to do it.
I checked the images uploaded by you. Please put the following figures and check.
5900C 100*67
5900P 100*67
5950C 100*45.5
5850P 100*43
I think you should get the figures mentioned by me.
BTW upper and lower BEPs are 5945 and 5855 resply meaning if nifty closes below or above these values there is a loss although only to the max extent of 450.
So, again just like I did for my earlier trade, I will have to take a call whether to wait till expiry or square off positions if there is a profit of say 1000+ before the expiry.
On one hand it is a bird in hand situation and on the other hand we have to let the profit ride. I guess this is the crux of speculation which could be a mix of taking calculated risk, weighing options depending on your state of mind/ financial position etc.
Sorry for digressing but I felt like penning some stray thoughts.
regards,
gmt900

 

[gmt900]

Spread #3 Dt - 23/09/2013

Covered the position today

OCT5900PE @ 129 (153) = +24
OCT5800PE @ 100 (118) = +18

Net P/L = +6 Points


Result for the month of Sept,
Spread #1 = +10
Spread #2 = +17
Spread #3 = +6

Total = +33 Points per lot :thumb:

CONGRATULATIONS !:thumb:

 

[ananths]

Hi Ananth,
I cannot upload OptionsOracle image since I can't figure out how to do it.
I checked the images uploaded by you. Please put the following figures and check.
5900C 100*67
5900P 100*67
5950C 100*45.5
5850P 100*43
I think you should get the figures mentioned by me.
BTW upper and lower BEPs are 5945 and 5855 resply meaning if nifty closes below or above these values there is a loss although only to the max extent of 450.
So, again just like I did for my earlier trade, I will have to take a call whether to wait till expiry or square off positions if there is a profit of say 1000+ before the expiry.
On one hand it is a bird in hand situation and on the other hand we have to let the profit ride. I guess this is the crux of speculation which could be a mix of taking calculated risk, weighing options depending on your state of mind/ financial position etc.
Sorry for digressing but I felt like penning some stray thoughts.
regards,
gmt900

Good trade gmt900....when we have plan for we just need to execute them...good thing is you have your plan ready..success will come by its own.

The Images i had put are all for 1 lot...i will make the quantity 100 and upload it in the evening. :thumb:

Keep your thoughts coming...it will help many :clapping:

 

[pakatil]

gmt900, Is this correct...?

 

[gmt900]

gmt900, Is this correct...?

Yes ! that is correct. As per the chart uploaded by you, current profit is 220. If nifty keeps howering around 5900, due to time decay, which should accelerate now, profit will grow, hopefully.

 

[ananths]

Spread #4 Dt - 24/09/2013

Bot OCT5800PE @ 130
Sold OCT 5700PE @ 103

Total cost 27 points

 

[bksujal]

hi there just had a question whats the margin required to sell nifty options? I dunno much about it since I always buy options

 

[gmt900]

hi there just had a question whats the margin required to sell nifty options? I dunno much about it since I always buy options

It will be around Rs 27,000 per lot.

 

[ananths]

hi there just had a question whats the margin required to sell nifty options? I dunno much about it since I always buy options

It will be around Rs 27,000 per lot.

@bksujal,

If you are just selling a NIFTY option it would be around 25k to 27k depends on the NIFTY level...
If you are hedging it with an Option buy, it would be below 20k (both together) :thumb: