Paper Trading Nifty Straddles

[bandlab2]

Update on EOD Feb 4

Strategy 1:

Sold Straddle for 327 premium. Right now total premium = 250. Profit = 77

Strategy 2:

Not Initiated yet . will do tomorrow

 

[uasish]

Will follow this thread & it's strategy.

 

[coolboy007]

Bandlab ,
The First strategy is really good and am sure you will make good profits in even paper trades. Next month Options also lose prem quickly in Exp week and in 1st week of new series too.

Update on Jan 27

Strategy 1:

Sold Straddle for 327 premium. Right now total premium = 295. Profit = 32

Strategy 2:

Not Initiated yet

Congrats Bandlabs , as expected by me also your Short straddle is making fantastic profit day by day.
I came to know about this when i used to BUY straddles (paper trade ) a week before exp of current month and bought Options of next month. The LOSS on straddle was many times more than what Oracle showed which taught me that Prem falls quite rapidly near exp which you are making full use of

Keep up the Good work. 1st trade is quite successful and now awaiting when your Strategy 2 will kick off

 

[ag_fx]

Update on EOD Feb 4

Strategy 1:

Sold Straddle for 327 premium. Right now total premium = 250. Profit = 77

Strategy 2:

Not Initiated yet . will do tomorrow

There is some mistake in ur levels buddy....the total prem at eod today is 291(234.85+55.80)

 

[munde_77]

Re: Paper Traing Nifty Straddles

Why cant we buy the options instead of selling them,

Time decay will kill in range bound market. More than 80% calls expire in loss.

 

[munde_77]

Re: Paper Traing Nifty Straddles

Bandlab ,
The First strategy is really good and am sure you will make good profits in even paper trades. Next month Options also lose prem quickly in Exp week and in 1st week of new series too.
Prabhjeetrana
What the member wants is to eat PREM DUE TO TIME DECAY. Near Exp , Prem of all Options get reduced at a quick pace and Profit from this scenario can be made only be selling Options and Buying them back at lower rates. Buying Options before exp week will lead us to losses i think.
Bandlab plz confirm. I hope this is your only motto.

I agree with you the near month premium get reduced as a quick pace, but there is also risk of quick increase of premium if market moves otherwise , moves against you sharply..... So it is equally risky . So risk reward ration will be same.....

 

[munde_77]

thanks dumdum for your views.

buying deep put/call out of the premium collected is not a bad idea. but the question is when to buy.

You can buy deep put/call say of six months later or one year later to protect your position in unforeseen circumstances

 

[AW10]

There is some mistake in ur levels buddy....the total prem at eod today is 291(234.85+55.80)

Ankit, I think the price that u have mentioned is for 2600 straddle.
But Bandlab has sold 2700 straddle. which has the last bid price of 161.5 + 87.5 = 249. ( I prefer to look at Bid rather then last traded price).

Happy Trading.

 

[bandlab2]

Ankit, I think the price that u have mentioned is for 2600 straddle.
But Bandlab has sold 2700 straddle. which has the last bid price of 161.5 + 87.5 = 249. ( I prefer to look at Bid rather then last traded price).

Happy Trading.

thanks AW10 for the explanation. yes it is 2700 straddle.

now the 2nd trade will be initiated by EOD. This is to buy straddle of equal premiums. most likely we may either go for 2800 or 2700 depening on where market ends today

 

[ag_fx]

thanks AW10 for the explanation. yes it is 2700 straddle.

now the 2nd trade will be initiated by EOD. This is to buy straddle of equal premiums. most likely we may either go for 2800 or 2700 depening on where market ends today

3000 Put, LTP=257
2900 Put, LTP=184
2800 Put, LTP=127.8

2700 Call, LTP=156.25
2600 Call, LTP=226

What would you buy/sell and why?

Happy Trading