Options Adjustments

[toughard]

hello lemondew...

have formed any view on this month range??? so that we can implement some legging strategies!

 

[toughard]

Okay.... lets employe our second 15%....

let this strategy be a legging one--
BUY 71PE & 73PE
BUY 73CE & 75CE
lets add other legs as market moves...

 

[toughard]

At Present...

Portfolio design---
60% (15% X 4) structured trades
10% for naked option trading
20% for M2M (untouched)
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1st 15%----------
Funds employed 15% of capital...
Per lot trade need Rs 40000...
RR - 1:4
aim to achieve 10% profits on invested amount if loss then 2.5% of 15% of portfolio (an income generation) Effect on portfolio if loss 0.5% including all charges...
Porfolio RRR is 0.5% to 1.5%
pay out sheet....

2nd trade ---- naked trading
bought 7200 PE @ +/- 60 with a stop as 7400 CE OI shedding below 4M
Money Management - using 2% of capital


3rd trade legging one--
BUY 71PE & 73PE
BUY 73CE & 75CE
lets add other legs as market moves... present pay off

updates for these simulated trades will be at necessary points... [/B]

good luck all....

toughard

 

[lemondew]

i am ok with your strategies but would prefer a protection. As per me nifty is likely to remain between 7200 and 7500 which I would sell. take protection on downside at 7100 and 7600 upside. Change positions as per situation. For more conservative approach would sell 7000 and 7500.

Regarding your 7200 PE. You still holding it. Nifty is more or less where it is. Ivs have crashed 58 now at 48 nifty at 7368 up 6 points.

hello lemondew...

have formed any view on this month range??? so that we can implement some legging strategies!

 

[lemondew]

Sold 7200 PE @ 48
Sold 7500 CE @ 54

Bought 7100 PE 28.75
Bought 7600 CE 26.9

Max profit = 46
Max loss 100

Lets go.NIFTY 7368.05

 

[lemondew]

Hold the positions for tomorrow. Position is more or less same.

Sold 7200 PE @ 48 = 37 => +11
Sold 7500 CE @ 54 = 68.70 => -14.70

Bought 7100 PE 28.75 = 22 => -6.75
Bought 7600 CE 26.9 = 35.70 => 8.80

Sold 7200 PE @ 48
Sold 7500 CE @ 54

Bought 7100 PE 28.75
Bought 7600 CE 26.9

Max profit = 46
Max loss 100

Lets go.NIFTY 7368.05

 

[toughard]

Sold 7200 PE @ 48
Sold 7500 CE @ 54

Bought 7100 PE 28.75
Bought 7600 CE 26.9

Max profit = 46
Max loss 100

Lets go.NIFTY 7368.05

Nice condor....its protected
what your exit plan here? is it as a income generating strategy or like a swing trading for few days anticipating range bond markets?

 

[toughard]

EOD observation

I still holding 7200 puts.. could have been averaged by buying 1 more lot @ 38 by 3.20PM.... if i was watching the live market full today...
which could have made holding 100 7200PE @ 49 but lets not consider this as its not done during markets and track only one lot from earlier trade....

What makes me decide like this?
see the table

Interpretation/anticipation-
# OI addition day by day to 75CE is made me to think the 7500 as a strong resistance.
# when market nears such type of res during the beginning of the contract itself then there will be two possibilities
1st - market makes good new lows in near time ( if there are NO triggers/news lined up then this is possible)
2nd - market decisively break out in search of new highs ( to anticipate this there should be good triggers ahead)
# Threats are like 72PE is constantly adding OI
# Danger of nifty shifting its support from 6800 to 7000 to 7200 levels
# at these kind of situations its better to cross verify the EOD spot charts for any visible resistance at present..... and the good news for bears is that I spotted an unconfirmed res @ 7429 & also @ 7504 and today we have witnessed rejection @ 80% of 7500 to 7118 ..... if it confirmed then it will leave the chart with double top pattern which is again a good bearish signal
# last but not the least one big candle BO above these levels have a fare chance of invalidating all bearish studies above mentioned ...... after all market is supreme!!

lets see...

toughard

 

[lemondew]

No fixed plan it will change based on how market acts.

Nice condor....its protected
what your exit plan here? is it as a income generating strategy or like a swing trading for few days anticipating range bond markets?

 

[toughard]

Sold 7200 PE @ 48
Sold 7500 CE @ 54

Bought 7100 PE 28.75
Bought 7600 CE 26.9

Max profit = 46
Max loss 100

Lets go.NIFTY 7368.05

How you calculated your Max loss 100?
why you are not used 7300PE and 7400CE to short?