Regular Income From Markets. Risk Free. Takes no Time

[jamit_05]

Hi Amit,

How you select the pair?

Good question.

You have to make sure that both the strike prices are equidistant from current spot value. Well, as much as possible.

For eg:

if NS 5112, then take 5000 PE and 5200 CE pair.

if NS 5150, then take 5000 PE and 5300 CE pair.

Idea is to have Strike prices equidistant.

Earlier I used to wait for round figures (4900, 5000...etc) on the Spot to come. Now, I think 150 is okay. RR won't be affected.

 

[Jeareh]

Hi Jamit,

Good thinking.

But my selection of pair is little different from yours.
Call is rounding up and put is rounding down from the sport price.
This will have good impact on every movement of the spot price.

When NF is 5068, my pair is CE 5100 & PE 5000

 

[AnandK]

Oops wrong thread. Please delete

 

[jamit_05]

When NF is 5068, my pair is CE 5100 & PE 5000

only 32 points to make CE go ITM but 68 points to make PE go ITM.... too much difference. Idea is to make a directionless trade...

 

[augubhai]

It has been my unshakable intention to keep it simple.

I like this thought.

Good question.

You have to make sure that both the strike prices are equidistant from current spot value. Well, as much as possible.

For eg:

if NS 5112, then take 5000 PE and 5200 CE pair.

if NS 5150, then take 5000 PE and 5300 CE pair.

Idea is to have Strike prices equidistant.

Earlier I used to wait for round figures (4900, 5000...etc) on the Spot to come. Now, I think 150 is okay. RR won't be affected.

Maybe I am just splitting hair here, but I think the Futures premium skews up the Option prices. So it might be better to check equidistance from the same month's Future price, rather than spot.

 

[divnain]

Hi Jamit (-:
Thanks for posting your experiences in such a nice and interesting way that a newbee like me is also getting somewhat knowledge of the topic, I started on 23.05.2012 without having any knowledge of the subject after my RM asked me that he will manage... but see attachment that what I done in last 20 days.

Than I tried to look after the subject and since than i am reading all your posts..
Please keep this thread continue.. it will surely help many people like me.

Regards
Divnain

 

[jamit_05]

Divnain,

The excel sheet looks worrisome on several counts. But primarily, your profits are way smaller than losses. Pls be careful with money. A trader must lose to learn, but only in small proportions. This money is his lifeline and is limited.

Pls do not take any further independent trades. Follow this thread and I promise you that you will not only revive your cash balance, but also learn important secrets/rules to trading successfully.

You WILL double your money in 10 trades and that is assured.

 

[Jeareh]

only 32 points to make CE go ITM but 68 points to make PE go ITM.... too much difference. Idea is to make a directionless trade...

Well. Though the direction of NF is unknown, strike price can be nearest to 100 of the spot price. When either call or put reaches ITM, sell that particular leg and go long for the next nearest stike price. The strike price nearest to spot price will give immediate result, particularly for NIFTY.

 

[jamit_05]

Keep an open eye to your Account.... do not take it for granted!!

Capital protection and growth is the main criteria of this thread.

Several complicated intraday and swing trading methods could also be discussed, but what we are aiming for is to develop a strategy which will definitely give us income at the month end... just like salary or pension. A handsome percentage return on your risk amount.

The development of that strategy is underway and as you see we have done phenomenal growth so far. (50%)

Therefore, till the strategy gets 100% locked as "workable" pls use discretion with position size. By that I mean, if you have Rs.100000 to spare.... then use only Rs.25000 from it. FD the rest for now. That Rs.25000 would have grown by Rs.12000 in last 20 days.... that is 12% return on Capital.... very good.... one year of FD return in 20 days!!

I am pretty sure that the returns will be around about the same even after we have completely developed the strategy. Just, that we will be more confident and will be able to invest a larger amount... may be 75% of capital.

 

[jamit_05]

Well. Though the direction of NF is unknown, strike price can be nearest to 100 of the spot price. When either call or put reaches ITM, sell that particular leg and go long for the next nearest stike price. The strike price nearest to spot price will give immediate result, particularly for NIFTY.

Hello,

That is good thinking. However, in months when the market going one way... madly bullish or bearish, which happens two to three months in a year... we will be polished.

I am looking for a strategy that will give me consistent and better results. Better in comparison with FD, stock portfolio, Mutual Fund. In that light, fixing a smart RR, choosing scenarios with 65% strike rate and consistent position sizing, one may find consistent success around the corner.

But, to each his own.