3 Option Strategies Tested Here

[gunavadhi]

27-june2008 10-10a.m.

4161--202+181--153+140--261+227

PROFIT/LOSS OF THE 3 STRATEGIES GIVEN BELOW

STRADDLE-(202+181)-371=+12

STRANGLE-(153+140)-297=-4

GUTS-(261+227)-486=+2

 

[beginner_av]

seniors please tell me when i post anything wrong

There are 3 simple option strategies.Straddle,Strangle and Gut.

1.Straddle, is a volatile option strategy or what we call Market Neutral Strategy. Being market neutral means that a Long Straddle profits no matter if the underlying asset goes up or down. Yes, a Long Straddle allows you to simply put on the position and then totally take your mind off the stock as you will profit no matter if the underlying asset goes up or down.(ex:when nifty is around 4100 buying 1 lot 4100 call and 1 lot 4100put)

The basic assumption is wrong. for a long straddle to make money, the mkt has to move a lot, but you do not know which direction it will be.

Vol -> +++ Directon -> +++ OR ---

To make money when mkt is neutral, WRITE or SELL straddle. Of course beware of the risks of any strategy.

Vol -> --- Direction -> +-

 

[gunavadhi]

26-june2008 11-34a.m.

4136--184+192--137+150--237+242

PROFIT/LOSS OF THE 3 STRATEGIES GIVEN BELOW

STRADDLE-(184+192)-371=+5

STRANGLE-(137+150)-297=-10

GUTS-(237+242)-486=-7

 

[Flock]

Nice thread. Will keep an eye on this.

 

[gunavadhi]

26-june2008 3.30p.m.

4136--171+195--125+153--225+248

PROFIT/LOSS OF THE 3 STRATEGIES GIVEN BELOW

STRADDLE-(171+195)-371=-5

STRANGLE-(125+153)-297=-19

GUTS-(225+248)-486=-13

 

[gunavadhi]

3-july2008 1-20a.m.

3883--76+342--51+277--106+415

PROFIT/LOSS OF THE 3 STRATEGIES GIVEN BELOW

STRADDLE-(76+342)-371=+47

STRANGLE-(51+277)-297=-+31

GUTS-(106+415)-486=+35

 

[santhosh44]

great thread gunavadhi. thanks a lot

 

[nareshch]

Will these trades are squared off when it profit or is the strategy is to wait till expiry ?

Naresh

 

[nareshch]

Will these trades are squared off when it profit or is the strategy is to wait till expiry ?

Naresh

I do not see any profit in these strategies until unless there is a wild one way move . Break Even for Strategy1 Is Either nifty above 4471 or below 3729 and alsmot same for other strategies .

Am i understanding these strategies correctly ????????????????


Naresh

 

[awachat]

Hi Nareshch

You are right, It should move some where + or else Call or Put value start getting reduce because of time period

I feel good points are more in this strategy
1) You dont need to monitor continually
2) You can buy more quantity
3) Less risk

There is no strategy is made where only profit happens . If available please let me know I am searching for last 4 years



@ gunavadhi

Thanks for sharing strategy with us