Don't worry about the market,Earn regardless of where the market goes !!

[ARMHM]

Re: Don't worry about the market,Earn regarless of where the market goes !!

That is the reason I prefer to write rather than buy an option.

 

[learn2trade08]

Re: Don't worry about the market,Earn regarless of where the market goes !!

dear arnav,
i am extremely sorry for the delay,i did not get a chance to check your messages earlier in the day.Thank you for sharing your knowledge,i hope it was profitable for you.
thanks again

did Any1 found the strategy good ?

Any advices on how i could i make it better & less risk free ....??

 

[smiling_face_srk]

Re: Don't worry about the market,Earn regarless of where the market goes !!

for every thing there has to be plan. i dont understand what actually u r trying to do?

what is this stratigy called?

whats principles of its working to give profit?

 

[Smart_trade]

Re: Don't worry about the market,Earn regarless of where the market goes !!

did Any1 found the strategy good ?

Any advices on how i could i make it better & less risk free ....??

I found the strategy quite workable.It is profitable over a wide range. It will be profitable in 8-10 months in a year.In case the mkt goes below 3500 then we can close all posns. Another way is to short a mini contract every 50 nifty points below 3800 and monitor these with stoploss.But it will require active watch on the mkt. Another combination is every 100 points nifty fall below 3700 cover 50 nifty puts sold and sell 4000 calls to recover some premium. Lot of alternatives open to actively manage the position.

One has to understand options and payoff matrix very clearly to trade this strategy.

Happy Trading

 

[pasha]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Dude as i said.... You would Be in loss If Nifty Closes Below 3500 IN JULY.

If you want the profits/losses @ various prices ill give u surely.

Consider Following Closes @ End of July


1)3200 - You lose 30,000
2)3300 - You lose 20,000
3)3400 - You lose 10,000
4)3500 - You lose 0
5)3600 - You receive 10,000
6)3700 - You receive 20,000
7)3800 - You receive 30,000
8)3900 - You receive 20,000
9)4000 - You receive10,000
10)4100 - You receive 5,000
11)4200 - You receive 10,000
12)4300 - You receive 15,000

*And so on, on every 100 point rise you gain 5,000 more.


*Also If Market comes to 3500 and you dont feel comfortable with Downward losses, you may square off your positions with minimum losses....

Hope this helps....

Mistake here
10)4100 - You receive 5,000
11)4200 - You receive 10,000
12)4300 - You receive 15,000
On these 3 possible outcomes, loss is the premium paid, since all puts are worthless.

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Buying 1 cheap 3400 put now would limit the downside in the event of going below 3200
if 3400 was available.

Totally agree.... But thatz the prob, We cant get lower Puts somehow

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

Mistake here
10)4100 - You receive 5,000
11)4200 - You receive 10,000
12)4300 - You receive 15,000
On these 3 possible outcomes, loss is the premium paid, since all puts are worthless.

Yup, But investment in Puts in only worth 2k.

Generally 2 actually Reap Full benefits in these strategies you should trade in these puts & calls when either market runs up/down.

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

I found the strategy quite workable.It is profitable over a wide range. It will be profitable in 8-10 months in a year.In case the mkt goes below 3500 then we can close all posns. Another way is to short a mini contract every 50 nifty points below 3800 and monitor these with stoploss.But it will require active watch on the mkt. Another combination is every 100 points nifty fall below 3700 cover 50 nifty puts sold and sell 4000 calls to recover some premium. Lot of alternatives open to actively manage the position.

One has to understand options and payoff matrix very clearly to trade this strategy.

Happy Trading

Yup as i said in the last post, If you want to really reap the full benefits, more intelligent trading in Puts & calls could be done.



Another Strategy That can be used in this (when market is a little more stable....)

*On every 100 Points of Nifty Going up/Down Use the strategy with different strike price and make newer Positions.

**All you actually need in this strategy(make several new positions) is Margin.

**By using this strategy, I too have made my range of nifty from 3800 to 5500(For july!!), Even though i started with this strategy in June when Market was 4800!!{**But to make this strategy i have invested 20k as cash & 5Lakhs(stocks) As margin....}



Thus even in Such a volatile Market i have a good range and any close between 3800-5500 Is Profits for me & a close of 4500 in july would give me more than a 1.5 lakhs !! whereas my investment is only 20k !!


*But every 100 points lower than 3800 = 30,000 loss for me

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

That is the reason I prefer to write rather than buy an option.

I think both have different Benefits.

In market such as this, my strategy is to try and time the markets by buying options and trade in them.


blank writing of calls/puts can be very dangerous, although buying a future and selling its call is same as selling a Put...

So for me writing is dangerous especially in such kind of markets....


But its all about different view, and different people's different strategies.

 

[arnav_rulz]

Re: Don't worry about the market,Earn regarless of where the market goes !!

for every thing there has to be plan. i dont understand what actually u r trying to do?

what is this stratigy called?

whats principles of its working to give profit?

aah the plan here is to make a certain range in which you are think the market would close in a particular month and specially when there is uncertainty whether is would go up or down & you want to earn regardless of where the market goes.


It is usually more beneficial is a little more stable market. but smart trading in options and help you reap benefits of the volatility.


The strategy As i call it is - Fck the market & earn where ever is goes !!


I am sorry i did not get the question here ?