Paper Trading Nifty Straddles

[bandlab2]

you are corect. not all months are volatile, most of them are range bound. stoploss will prevent huge loss.. there are other ways to minimise the loss. by hedging. buy out of money options from the premium received. for example you can buy mar 2200 put for 25 rs. but best thing would be take sl and get out.

the purpose of this thread is to watch how this strategy works over a period of 6 months

 

[munde_77]

you are corect. not all months are volatile, most of them are range bound. stoploss will prevent huge loss.. there are other ways to minimise the loss. by hedging. buy out of money options from the premium received. for example you can buy mar 2200 put for 25 rs. but best thing would be take sl and get out.

the purpose of this thread is to watch how this strategy works over a period of 6 months[/QUOTEs

since how long you are tradng in nifty straddles

 

[myvineet]

we have initiated our strategy for march series. sold 2700 call and 2700 put for total premium of 294

update at 26/2/09

strategy 1 : sold straddle for premium 294..at EOD total value 245..PROFIT=49

thanx

vineet

 

[dumdum20008]

Hi,

For the test paper trading, at the time of posting

2700 CE Mar = 140
2700 PE Mar = 137

sold for 140+137 = 277

To protect from any potential crash with in Feb expi ( upto 26 Feb) bought 2500 PE Feb @ 4.5

So Net Premium colleted 277-4.5 = 272 approx.

Lets see what unfolds.

(sorry bandlab2 , i posted without ur permission, but i was ecxcited , especially for protection testing with 2500 PE Feb, which i think will not hurt much, given the safety for 4-5 days)

As of now position closed at LTPs

2700 CE Mar = 157
2700 PE Mar = 89

bought for 157+89 = 246
Premi lost in 2500 PE Feb = 4.5

Net Gain 277 -( 246 + 4.5) = 26.5 -(Brokerage+taxes)

 

[bandlab2]

you are corect. not all months are volatile, most of them are range bound. stoploss will prevent huge loss.. there are other ways to minimise the loss. by hedging. buy out of money options from the premium received. for example you can buy mar 2200 put for 25 rs. but best thing would be take sl and get out.

the purpose of this thread is to watch how this strategy works over a period of 6 months[/QUOTEs

since how long you are tradng in nifty straddles

i dont do it everymonth. paper trading now for 6 months, then based on results might do regurally. but i do lot option trades, diferent strategies for diferent markets

 

[munde_77]

i dont do it everymonth. paper trading now for 6 months, then based on results might do regurally. but i do lot option trades, diferent strategies for diferent markets

Good going.........keep it up

 

[bandlab2]

tomorrow we will buy stradle as per strategy 2

 

[pasha]

tomorrow we will buy stradle as per strategy 2

Would suggest you wait till next Thursday as there are 5 holidays in between eroding time value on the calls and puts.

 

[bandlab2]

only 2 holidays. 3 are in april

Update as on March 4 EO

strategy 1 : sold straddle for premium 294..at EOD total value 198.. PROFIT=96 points

Strategy 2: bought 2700 stradle today for 198 rs

 

[dumdum20008]

Hi,

here is straddle with protection till mar 09 expiry.

(prices are from last bid/ask in my rkg terminal)

2600 CE APRIL = 182
2600 PE APRIL = 162

Sold for 182 + 162 = 344

Now Protection side ( 200 DOWN and 200 UP, time is much more so upside also need protection)

2800 CE MARCH = 31
2400 PE MARCH = 32

Bought for 31 + 32 = 63

Nett Premium Recd. 344 - 63 = 281

[ 81 points excess value than protection levels ( 281 -200) make this more attractive, as position seems win-win whatever decisive value beyond protection range NF can take till March 09 expiry]

lets see what unfolds.