Nifty Options Vertical Spread Trading

[whisky]

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:

Rightly said.:thumb::thumb:

 

[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.

Closed this position today...didn't want to do any adjustment..thought I can wait for another opportunity to enter a trade instead of breaking my head over this.

Short 6200CE @ 51 (87) = -36
Long 6300CE @ 17 (41) = +24

Short 6000PE @ 57 (20) = +37
Long 5900PE @ 36 (11) = -25

Net P/L = 0 point

 

[ananths]

Spread #8

Entered a put debit spread today,

Long 6100PE @ 40
Short 6000PE @ 22

Total cost 18 points.

Any pull back of 50+ points will give good returns in this spread.

 

[ananths]

Spread #8

Entered a put debit spread today,

Long 6100PE @ 40
Short 6000PE @ 22

Total cost 18 points.

Any pull back of 50+ points will give good returns in this spread.

Closed spread #8

Long 6100PE @ 40 (33)
Short 6000PE @ 22 (17)

Net P/L = -2 points.

 

[ananths]

Started with spread for Nov today,

Spread #1 dt 29/10/2013

Long 6400CE @ 59 (72) = +13
Short6500CE @ 36 (41) = -5

Cost of the spread is 23 points :thumb:

Net P/L is +8 points.

Good that market has closed well above 6200 and lots of PE's OI added to 6200 today. It will act as a support now. My SL would be entry. Target will see.. :thumb:

 

[ananths]

Started with spread for Nov today,

Spread #1 dt 29/10/2013

Long 6400CE @ 59 (72) = +13
Short6500CE @ 36 (41) = -5

Cost of the spread is 23 points :thumb:

Net P/L is +8 points.

Good that market has closed well above 6200 and lots of PE's OI added to 6200 today. It will act as a support now. My SL would be entry. Target will see.. :thumb:

Spread #1 - Closed

Long 6400CE @ 59 (78) = +19
Short6500CE @ 36 (46) = -10

Net P/L is +9 points :thumb:

 

[gmt900]

Max pain for Oct series for nifty has been @6100 for quite sometime now.
I have taken the following trade today:
Debit Put Spread.
Sold 6100 P @ 3.1
Bought 6150 P @ 6.5.
Max Possible Profit : 46.6 points
Max Possible Loss : 3.4 points
BEP @ 6150.
If nifty goes down today or tomorrow, one may be able to get some profit.
I think this is a low risk strategy with a good chance of getting profit if Max Pain theory holds good.
Once again thanks to Raj for introducing us to Max Pain theory.
Immediately after I took position, Max Pain changed to 6200

 

[ananths]

Max pain for Oct series for nifty has been @6100 for quite sometime now.
I have taken the following trade today:
Debit Put Spread.
Sold 6100 P @ 3.1
Bought 6150 P @ 6.5.
Max Possible Profit : 46.6 points
Max Possible Loss : 3.4 points
BEP @ 6150.
If nifty goes down today or tomorrow, one may be able to get some profit.
I think this is a low risk strategy with a good chance of getting profit if Max Pain theory holds good.
Once again thanks to Raj for introducing us to Max Pain theory.
Immediately after I took position, Max Pain changed to 6200

Hi gmt900,

IMO 6150 you bought itself is low cost(6.5) so I dont think you needed to go for a spread in this case to reduce the cost. I would have gone for naked option and would not mind losing 6.5 points if I think market would go in that direction..because normally in Debit spread I take a risk of 20 to 30 points.
Anyway saving some 3 points is not a bad idea...good luck :thumb:

 

[ananths]

Spread #2

Long 6500CE @ 49.5
Short 6600CE @ 26.5

Total cost is 23 points

Now it looks like exited spread #1 too early

 

[ananths]

Spread #2

Long 6500CE @ 49.5
Short 6600CE @ 26.5

Total cost is 23 points

Now it looks like exited spread #1 too early

Converted this to a Credit spread today,

Long 6500CE @ 49.5 (40) = -9.5
Short 6600CE @ 26.5 (22) = +4.5 (Closed)
Short 6400CE @ 73 (71) = +2

Expecting market to be flat or bearish today due to expiry.