CMP for Nifty August 4800 Call = 4.95 (P/L = 100.05 X 50 = Rs 5002.50
CMP for Nifty August 4200 Put = 5.25 (P/L = 61.25 X 50 = Rs 3062.50
CMP for Nifty August 4100 Put = 2.65 (P/L = 45.45 X 50 = Rs 2272.50
Total Profit = Rs 10,337.50 per lot
Ghosh Sir
I understand that u had recommended the following Write at the time of July expiry . 2 Puts and 1 call so it was a hedged position . with a bullish view .
Is this a good way of hedging or a naked buy Call against a Call Sell is advised ?
My other Question is when is the right time to write as when we near the expiry we have the cushion of the time decay acting fast in our favor but the premiums are very low and if i write way before the expiry i will have to face the volatility .which can be deadly
CMP for Nifty August 4200 Put = 5.25 (P/L = 61.25 X 50 = Rs 3062.50
CMP for Nifty August 4100 Put = 2.65 (P/L = 45.45 X 50 = Rs 2272.50
Total Profit = Rs 10,337.50 per lot
Ghosh Sir
I understand that u had recommended the following Write at the time of July expiry . 2 Puts and 1 call so it was a hedged position . with a bullish view .
Is this a good way of hedging or a naked buy Call against a Call Sell is advised ?
My other Question is when is the right time to write as when we near the expiry we have the cushion of the time decay acting fast in our favor but the premiums are very low and if i write way before the expiry i will have to face the volatility .which can be deadly
I was having bullish view of Aug. series so have reco. above trades. Bull spread could also be done i.e. buy a in money call and sell out of money call. Problem is that the call bought may start lossing faster than OTM call write in case underlysing doesn't move eitherway. This may lead to lesser P/L. When expiry starts nearing then in money call will also start loosing so profit reduce further. Yes, when bull spread is done for a week or two, then, it might lead to profits.
I prefer writing puts/calls than buying calls/puts to take advantage of movement within a range and because of bull spreads lacuna stated above. Yes, Bull spread is less risky.
Will start writing next months options by 11th of current month. Range will be decided as per TA.
Yes, one can write options near expiry as well. Profit will comparatively less per lot because of lesser premiums. Yeah! One can write more lots to compansate the same, then, brok etc comes in.
Regards
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