Protective Put Advanced Version 150% Profit

#1
As we all know Protective Put Strategy. I made Advanced version of it and it works.

Strategy :

1st Day of every month contract that is Friday at Market close timing.

Buy One Future Contract and Buy 2 ATM Puts.

That’s all. So Simple Strategy.

Nifty Lot Size: 25

Total Investment:

For buying 2 ATM put around Rs. 5000/- to Rs.10,000/-

Buying Future Contract Margin : 20,000/- to Maintain MTM.

So Total Investment : Rs. 30,000/-

Example:

Last Month August 2015

On 1st day of Contract Friday 31/07/2015 Market Close timing

Buy 1 Future contract at : 8569.65

so we Buy 2 ATM Put of 8600 (Use nearby figures to buy Put in 100 series)

Put Cost : 136 * 2 = 272

272 * 25 ( Lot size) = Rs. 6800/-

Ok lets see what happened next

In August series

On 25/08/2015 when Put is At high

Put Price was 930

As we have 2 lots so 930*2 = 1860

1860 * 25 (Lot size) = Rs. 46,500/-

Now Profit in Puts : 46,500 – 6800 (Initial Investment) = Rs. 39700/-

As we got profit in Puts but at the same time we Bought Future and got Loss in it.

Future Buying Loss = 8570 - 7665 = 905

So 905 * 25 (Lot Size) = - Rs. 22,625/-

39700-22625 = Rs.17,075/-

So our Net Profit in August is +Rs. 17,075/-

Below are 8 months results of this strategy From Jan 2015.

August 15: + Rs.17,075/-

July 15: - Rs.475/-

June 15: + Rs.4324/-

May 15: + Rs.2650/-

April 15: + Rs.5300/-

March 15: + Rs.4700/-

Feb 15: + Rs.1700/-

Jan 15: + Rs.10,825/-

From Jan to Aug 2015 in 8 Months only one month Loss and it was Rs.475/-

8 Month Statistics:

Net investment : Rs. 30,000/-

Total Net Profit: Rs. 46,099/-

Return:150% in 8 Months of 2015.

If you check previous years you will get same results of this strategy.

Now Most Imp. :

Before some genius come and say it is not possible to catch High any month.I show results to make strategy simple.

If its not possible you to catch High just close position whenever you get 100 points net profit in either direction.

By this strategy you can make money in long term because to make profit we need market upside or downside move of 300 to 500 points within month, depends on Put Cost.

And Now a days 100 or 200 points move in a single day is general.

I just want to make strategy simple so any new trader can understand it.

BUT

In Some Months Market goes Upside or Downside and we make profit in either Future or Put and in same months our losing position also make profit or become neutral because Market come to its original position or going opposite direction in same months.

I did not add that Calculations in this strategy to make it simple.

Now its your turn, I request Senior Members of Traderji Give your Opinions, Do some R&D to make this Strategy more Profitable.

Thanks




 
Last edited:

mohan.sic

Well-Known Member
#4
As we all know Protective Put Strategy. I made Advanced version of it and it works.

Strategy :

1st Day of every month contract that is Friday at Market close timing.

Buy One Future Contract and Buy 2 ATM Puts.

That’s all. So Simple Strategy.

Nifty Lot Size: 25

Total Investment:

For buying 2 ATM put around Rs. 5000/- to Rs.10,000/-

Buying Future Contract Margin : 20,000/- to Maintain MTM.

So Total Investment : Rs. 30,000/-

Example:

Last Month August 2015

On 1st day of Contract Friday 31/07/2015 Market Close timing

Buy 1 Future contract at : 8569.65

so we Buy 2 ATM Put of 8600 (Use nearby figures to buy Put in 100 series)

Put Cost : 136 * 2 = 272

272 * 25 ( Lot size) = Rs. 6800/-

Ok lets see what happened next

In August series

On 25/08/2015 when Put is At high

Put Price was 930

As we have 2 lots so 930*2 = 1860

1860 * 25 (Lot size) = Rs. 46,500/-

Now Profit in Puts : 46,500 – 6800 (Initial Investment) = Rs. 39700/-

As we got profit in Puts but at the same time we Bought Future and got Loss in it.

Future Buying Loss = 8570 - 7665 = 905

So 905 * 25 (Lot Size) = - Rs. 22,625/-

39700-22625 = Rs.17,075/-

So our Net Profit in August is +Rs. 17,075/-

Below are 8 months results of this strategy From Jan 2015.

August 15: + Rs.17,075/-

July 15: - Rs.475/-

June 15: + Rs.4324/-

May 15: + Rs.2650/-

April 15: + Rs.5300/-

March 15: + Rs.4700/-

Feb 15: + Rs.1700/-

Jan 15: + Rs.10,825/-

From Jan to Aug 2015 in 8 Months only one month Loss and it was Rs.475/-

8 Month Statistics:

Net investment : Rs. 30,000/-

Total Net Profit: Rs. 46,099/-

Return:150% in 8 Months of 2015.

If you check previous years you will get same results of this strategy.

Now Most Imp. :

Before some genius come and say it is not possible to catch High any month.I show results to make strategy simple.

If its not possible you to catch High just close position whenever you get 100 points net profit in either direction.

By this strategy you can make money in long term because to make profit we need market upside or downside move of 300 to 500 points within month, depends on Put Cost.

And Now a days 100 or 200 points move in a single day is general.

I just want to make strategy simple so any new trader can understand it.

BUT

In Some Months Market goes Upside or Downside and we make profit in either Future or Put and in same months our losing position also make profit or become neutral because Market come to its original position or going opposite direction in same months.

I did not add that Calculations in this strategy to make it simple.

Now its your turn, I request Senior Members of Traderji Give your Opinions, Do some R&D to make this Strategy more Profitable.

Thanks






are these all 8 months traded in real.
Can you pls share exit dates in those trades and current month trade with values.
 
Last edited:

umeshmandal

Well-Known Member
#5
Hmm, looks good but returns may not be as high as you calculate them to be as also mentioned by you about catching the highest level of Put value. Not being an Option trader I may be missing out vital points but trying to put forward my thinking process.

The August calculation you squared off on 25th Aug at Highest value of Puts ! So a person need not be a genius to understand this but need to be rational
Had the Put shown a higher value on 27th the derivative closing day we would take that as our Profit point calculation?
I feel the safest option may be to calculate whether we get the return of a predecided level during the month. As we are aiming for 150% p.a. we need minimum 15% per month to off set losing months! In August you calculated the Capital requirement at ~30000/- So all we need to see whether on any day till close were we in profit of Rs.4500/-? Same can be done for other months.

Do mention how the calculation has been done in other months from Jan to July?
The August return if squared at close would result in a profit of ~10225/- less expenses !
And as you have the option figures handy do post the Profit figures for each month if squared at 100 points.
Thanks for initiating a discussion on an Option strategy.
 

Verde

Well-Known Member
#6
This is the same as buying the straddle. No need to buy the future, just buy the call and put.
It loses in sideways market and wins in the big moves.
 
#7
@Mr. MT

This synthetic option strategy is in the market since decades. The name of it is "Long Put Synthetic Straddle". Here some more details on it: http://www.futuresfacts.com/long-put-synthetic-straddle

On the other hand we have the "Long Call Synthetic Straddle": http://www.avasaram.com/tutorials/o...ons.jsp?tutorial=Long Call Synthetic Straddle

To complete it we also have the "Short put synthetic straddle" and the "Short call synthetic straddle".

No secret behind it and surely not some thing which Mr. Master Trader can claim that HE is the inventor of it to make a protective put strategies into this strategy. Bull ****.

Any way: Synthetic straddles are for pros and not for beginners. The different ways they can be traded are quit flexible, but still there is no guarantee that you will end with profit at end of any month even in the coming future. Some months of paper trade will not do the job and even not a back test of a few months will not do the job in dept.

Wish you only the best by trading this way and hopefully you make a lot of money with it, but kindly and even strongly stop posting that you are the inventor of "Long Put Synthetic Straddles" by posting this: I made Advanced version of it and it works, other wise you will face consequences.

Dan :)
 

Rish

Well-Known Member
#8
As we all know Protective Put Strategy. I made Advanced version of it and it works.

Strategy :

1st Day of every month contract that is Friday at Market close timing.

Buy One Future Contract and Buy 2 ATM Puts.

That’s all. So Simple Strategy.

Nifty Lot Size: 25

Total Investment:

For buying 2 ATM put around Rs. 5000/- to Rs.10,000/-

Buying Future Contract Margin : 20,000/- to Maintain MTM.

So Total Investment : Rs. 30,000/-

Example:

Last Month August 2015

On 1st day of Contract Friday 31/07/2015 Market Close timing

Buy 1 Future contract at : 8569.65

so we Buy 2 ATM Put of 8600 (Use nearby figures to buy Put in 100 series)

Put Cost : 136 * 2 = 272

272 * 25 ( Lot size) = Rs. 6800/-

Ok lets see what happened next

In August series

On 25/08/2015 when Put is At high

Put Price was 930

As we have 2 lots so 930*2 = 1860

1860 * 25 (Lot size) = Rs. 46,500/-

Now Profit in Puts : 46,500 – 6800 (Initial Investment) = Rs. 39700/-

As we got profit in Puts but at the same time we Bought Future and got Loss in it.

Future Buying Loss = 8570 - 7665 = 905

So 905 * 25 (Lot Size) = - Rs. 22,625/-

39700-22625 = Rs.17,075/-

So our Net Profit in August is +Rs. 17,075/-

Below are 8 months results of this strategy From Jan 2015.

August 15: + Rs.17,075/-

July 15: - Rs.475/-

June 15: + Rs.4324/-

May 15: + Rs.2650/-

April 15: + Rs.5300/-

March 15: + Rs.4700/-

Feb 15: + Rs.1700/-

Jan 15: + Rs.10,825/-

From Jan to Aug 2015 in 8 Months only one month Loss and it was Rs.475/-

8 Month Statistics:

Net investment : Rs. 30,000/-

Total Net Profit: Rs. 46,099/-

Return:150% in 8 Months of 2015.

If you check previous years you will get same results of this strategy.

Now Most Imp. :

Before some genius come and say it is not possible to catch High any month.I show results to make strategy simple.

If its not possible you to catch High just close position whenever you get 100 points net profit in either direction.

By this strategy you can make money in long term because to make profit we need market upside or downside move of 300 to 500 points within month, depends on Put Cost.

And Now a days 100 or 200 points move in a single day is general.

I just want to make strategy simple so any new trader can understand it.

BUT

In Some Months Market goes Upside or Downside and we make profit in either Future or Put and in same months our losing position also make profit or become neutral because Market come to its original position or going opposite direction in same months.

I did not add that Calculations in this strategy to make it simple.

Now its your turn, I request Senior Members of Traderji Give your Opinions, Do some R&D to make this Strategy more Profitable.

Thanks




Closing the trade, should have some strategy based on % (profit or loss) or based on VIX or settlement to settlement. Then only we can say this a strategy. Moreover, when nifty was trading at 4000, this strategy would have failed. Now, nifty is trading at 8000 levels, and even simple 8% move it is almost 640 points..so, looks good and generates profit.

Still, exit rule is not clear and not fixed. Without Rule, can't claim this is solid profit strategy, based on random closing options at higher level.
 
#9
To, Mr. Somatung

First of all I did not said I invented it. I said I made advanced version of Nifty Future and Put Combination. New traders get confused with high class names and in my thread I always mention that I made it simple for new traders to understand. So keep US based names and examples with you. The thread is not for born genius like you.:p

As you said this is not for beginners though strategy has Limited Risk Unlimited Profit potential and also has high probability of success. Can you please tell any strategy for beginners.

I did not said it is 100% full proof and gave any guarantee of profit.

Giving strategy with real Indian markets examples and just talking about US based websites is different things.

If you knew it already why don’t you try with Indian stocks and put it in front of another traders to make it more profitable.

I already talk about genius like you in this thread and what you are going to ask I knew it.

I gave real market examples for new traders to understand not for genius like you. ;)

In any F&O website they did not said when to close this strategy.

I gave at high as well either way 100 points profit Closing And also a task for extremely genius trader like you.

No any website talk about that task.

Born genius make some R&D on that.:)

I already did but don’t expect everything free Do some work at your end.

Don’t shout here,:annoyed: It will be better if you make some changes to this strategy and make it more profitable if you are real genius.:p


And most Imp. You had just 5 Threads in 22 Months and all are BULL**** Just Copy paste from others websites. I made 4 in just one month and all are mine and excellent as other peoples like it.

Aur ek baat bata as Mr. kaalchakrasamay's says in one post for you same by me now Sirf Tujhe hi mirchi kyon lagi??
 
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#10
Well, a Protective Put Strategy is a married put. After posting this you claimed this: I made Advanced version of it and it works.

What you show is and always was a simple ""Long Put Synthetic Straddle". End of story.

How to improve so that you can add a bit on your end: Try to convert it into a back spread on the end your BE is touched in swing trading. Then after you convert it into: ? and now your genius can move on with it. :p

Good luck Mr.

And as told: Wish you only the best by trading this way and hopefully you make a lot of money with it, but kindly and even strongly stop posting that you are the inventor of "Long Put Synthetic Straddles" by posting this: I made Advanced version of it and it works, other wise you will face consequences.
 

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