Regular Income From Markets. Risk Free. Takes no Time

[sayantan2u9]

Hello jamit ,

i just read the your full thread .
i just want to throw in something , since you have some experience in options.
have you considered ever playing with both the near and next months options ?
like , lets say you sold the 4800pe june contract and bought the 4800pe july contract , to get the time decay bonus . (this may be a bad example )
but my point is , their may be a good strategy out their how we can profit by using both months contract together.

As i mainly trade in future , i though someone with experience may have a much better understanding , and working out a good strategy about this.

just give it some though , may be you can come up with something good

 

[jamit_05]

Hi sayantan2u9,

There are quite a few directionless methods out there. One I came across was Delta-Zero. I wish someone could practically demonstrate it.

It starts off with taking a Delta-Zero position of a balanced mix of puts and calls. So, whichever direction the market goes that leg comes in profit... so one is supposed to book that profit and bring the reading back to Delta-Zero such that when all positions are liquidated you get more than you had invested. If you invested Rs.360 a pair at start of the month, then you should collect that amount plus profit and expenses in profit booking over the months. Time-decay is the enemy takes-off 3% everyday.

Anyhow, I think that individual who posted that theory on this thread is not alive anymore... it would be really interesting to discuss this...

Wonder if ST or Savant know anything about it.

 

[jamit_05]

Shorted pairs are required to stay within the 80 points radius for at least two days to give profit... this is not too much to ask for... lets see the results after a handful of trades.

 

[jamit_05]

Position is now in profit.... if today goes up another 40 odd points... then target will be met...

Not sufficient profit yet... will stick to the exit plan.

 

[vssoma]

jamot,
what abt. buying 50-52 pait @ 108-110
thinking in these 2-3 days...there'll be more fire work with nifty

 

[jamit_05]

jamot,
what abt. buying 50-52 pait @ 108-110
thinking in these 2-3 days...there'll be more fire work with nifty

It is a very good idea to do so... the premiums are definitely not overbought since they have reduced from 111 Monday to 107 today.... good chances of success... but tomorrow is a Wednesday... I will buy tom EOD.... will hold till Friday EOD... expecting good returns...

 

[divnain]

It is a very good idea to do so... the premiums are definitely not overbought since they have reduced from 111 Monday to 107 today.... good chances of success... but tomorrow is a Wednesday... I will buy tom EOD.... will hold till Friday EOD... expecting good returns...

Hello Amit
May I ask.. What is special with Wednesday

 

[jamit_05]

Hello Amit
May I ask.. What is special with Wednesday

Its statistics are special. Wednesday is dullest of all 5 days. Prices do not cover much distance, hence premiums get cut... become cheap and then we buy...

Last Wednesday was not dull... big news came about of Spain bailout...

 

[vssoma]

jamit, r u going to buy 50-52 pair...@ eod

 

[pictforu]

Originally Posted by jamit_05
It is a very good idea to do so... the premiums are definitely not overbought since they have reduced from 111 Monday to 107 today.... good chances of success... but tomorrow is a Wednesday... I will buy tom EOD.... will hold till Friday EOD... expecting good returns...

Today what will be the best buy for this pair?