Nifty Options Vertical Spread Trading

[sanjeev258380]

How much brokerage u paying

 

[ananths]

Guruji if i take 1 lot of each than how much capital(i only have 9k) should i have? Till now i learned only to crawl in trading .
If you don't like my question you can throw out of window not me my question

Bhai....you have only 9K and you want to trade options spread? Then its impossible. You need to have atleast 20K for one pair but I suggest, to play you need at least 1 lakh to make some good money month on month. Till then do paper trade and learn! :thumb:

 

[ananths]

How much brokerage u paying

I'm using Zerodha...Rs 20 per executed order. :thumb:

 

[ananths]

Spread #7 - Update

Short 6200CE @ 51 (32) = +19
Long 6300CE @ 17 (13) = -4

Short 6000PE @ 57 (64) = -7
Long 5900PE @ 36 (37) = +1

Total P/L = +9 Points. :thumb:

Update :-

I'm still holding this Iron condor position but its bit tricky now as market seems to be heading towards 6300...the highest OI is also suggests that 6300 is the next resistance.

Current status,

Short 6200CE @ 51 (80) = -29
Long 6300CE @ 17 (36) = +19

Short 6000PE @ 57 (23) = +34
Long 5900PE @ 36 (12) = -24

Total P/L = 0 Points. Yesterday it was with +9 points

I will hold this position for today and Monday I will take any corrective action required. I'm planning to close put credit spread and to add another short to 6200CE and will buy ITM 6100CE. I will check the scenario in Option oracle and see what the outcome would be. Everything depends on market closing today and opening on Monday!...
So total position would be like below,
Long 6100CE - 1 lot
Short 6200CE - 2 lots
Long 6300CE - 1 lot.

 

[ananths]

Update :-

I'm still holding this Iron condor position but its bit tricky now as market seems to be heading towards 6300...the highest OI is also suggests that 6300 is the next resistance.

Current status,

Short 6200CE @ 51 (80) = -29
Long 6300CE @ 17 (36) = +19

Short 6000PE @ 57 (23) = +34
Long 5900PE @ 36 (12) = -24

Total P/L = 0 Points. Yesterday it was with +9 points

I will hold this position for today and Monday I will take any corrective action required. I'm planning to close put credit spread and to add another short to 6200CE and will buy ITM 6100CE. I will check the scenario in Option oracle and see what the outcome would be. Everything depends on market closing today and opening on Monday!...
So total position would be like below,
Long 6100CE - 1 lot
Short 6200CE - 2 lots
Long 6300CE - 1 lot.

As mentioned in my previous post, to adjust the spread I will be converting it to a butterfly spread, if market goes further up.

To analyse this butterfly, this is the ideal situation. I can still exit this spread without any loss but I will use this as a learning with real money in stake. :thumb:

@ Option experts..any better idea you have in such situation? It would be a learning for all option strategy traders. :thumb:

I see this as only 23 points as risk and around 70 points reward....

 

[gmt900]

As mentioned in my previous post, to adjust the spread I will be converting it to a butterfly spread, if market goes further up.

To analyse this butterfly, this is the ideal situation. I can still exit this spread without any loss but I will use this as a learning with real money in stake. :thumb:

@ Option experts..any better idea you have in such situation? It would be a learning for all option strategy traders. :thumb:

I see this as only 23 points as risk and around 70 points reward....

Dear ananth,
I have been toying with the idea of Butterfly spread for sometime now .
I find that the R/R ratio is invariably great, but the probability of reward realising is low (irrespective of what OptionsOracle shows). The element of chance or luck is more predominent. Downside is your margin remains blocked. Upside is the loss is limited and known upfront irrespective of the market movement.
I have entered into Butterfly Spread for infy on 10 OCT with a strike price of 3100. Max Possible profit ,if infy is at 3100 at expir is 11,312.5 and Max loss at expiry will be 1,187.5.
Since Infy is trading above 3300, if I were to square off the strategy during the last week i would have made a profit or loss of a few hundred Rs.
Margin of more than 1.1 lacs is blocked.
If INFY goes below 3200 next week I may make a few thousand Rs.

 

[gmt900]

As mentioned in my previous post, to adjust the spread I will be converting it to a butterfly spread, if market goes further up.

To analyse this butterfly, this is the ideal situation. I can still exit this spread without any loss but I will use this as a learning with real money in stake. :thumb:

@ Option experts..any better idea you have in such situation? It would be a learning for all option strategy traders. :thumb:

I see this as only 23 points as risk and around 70 points reward....

Dear ananth,
I have been toying with the idea of Butterfly spread for sometime now .
I find that the R/R ratio is invariably great, but the probability of reward realising is low (irrespective of what OptionsOracle shows). The element of chance or luck is more predominent. Downside is your margin remains blocked. Upside is the loss is limited and known upfront irrespective of the market movement.
I have entered into Butterfly Spread for infy on 10 OCT with a strike price of 3100. Max Possible profit ,if infy is at 3100 at expiry is 11,312.5 and Max loss at expiry will be 1,187.5.
Since Infy is trading above 3300, if I were to square off the strategy during the last week i would have made a profit or loss of a few hundred Rs.
Margin of more than 1.1 lacs is blocked.
If INFY goes below 3200 next week I may make a few thousand Rs. If I hold on to the position till expiry and Infy closes in 3080/3120 band I might make good profit.
One more idea I have been toying with is to use Butterfly spread for nifty during expiry week with Max Pain as the strike price.
I feel Butterfly Spread is a good tool to use but only after we have sufficient experience with live trades.
Happy Trading,
gmt900

P S : you had sought the advice of " Option Experts" but I have shared my thoughts as a beginner.

 

[ananths]

Hi gmt900,

You are no more a beginner....once you start with butterfly kind of spread and if you are able to identify RR..you are an expert.
As you mentioned one should be lucky here to get the max profit...however I don't trade butterfly normally.....this time my iron condor is in trouble so just thought of doing some adjustment. Let us see what market has to offer us on Monday...thanks for your views...keep them coming

 

[abcpankaj]

depending on your reading of nifty trend, you can consider shifting entire condor upwards .

essentially you are replacing 59/60p 62/63c condor with 61/62p 62/63c zero width condor (can also be called butterfly)
replacing it by 61/62p 63/64c or 61/62p 64/65c or 60/61p 63/64c condor will cost you extra commission for one spread, but give a position for your new reading of nifty range.

Existing 59/60p 62/63c condor was at breakeven, Friday close.It will probably give you enough to cover its commission by Monday ( considering theta decay over weekend & no major move in sgx nifty/US markets till now)

 

[ananths]

Shifting spread is an excellent idea Pankaj. Its like playing a new a iron condor.

Yes my current spread won't go on loss because of time decay...that is the main reason i'm still holding it over weekend.