IRON CONDOR-option trading strategy

#51
As per my friend'd advice I doubled my risk money, from 5% to 10%.

Hence I added additional positions for IC on 3/7/17.

ON 03/07/17 additional position
JUL9900 CALL BUY 750 12.30 -9225.00
JUL9700 CALL SELL 750 61.90 46425.00
JUL9400 PUT SELL 750 36.25 27187.50
JUL9200 PUT BUY 750 14.90 -11175.00
MAX PROFIT for this position 53212.50
TOTAL MAX PROFIT including earlier profit 102450.00
TARGET RETAIN PROFIT(50%) 51225.00

I liquidated 30000 RRSLGETF(NSE) at Rs 17.16 incurring loss of Rs 2700/-.
 
Last edited:
#52
I committed mistake in calculating margin requirement.
For 20 lots margin requirement was 1900000.
Hence I have to liquidate more RRSLGETF.
I feel I am too much aggressive. Now almost my entire trade capital is invested
 
#53
ON 07/07/17
JUL9900 CALL SELL 1500 11.30 16950.00
JUL9700 CALL BUY 1500 65.65 -98475.00
JUL9400 PUT BUY 1500 21.50 -32250.00
JUL9200 PUT SELL 1500 7.70 11550.00
-102225.00
RESULT 225.00
 
#54
POSITION ON 14/07/17
JUL9900 CALL SELL 1500 64.35 96525.00
JUL9700 CALL BUY 1500 215.45 -323175.00
JUL9400 PUT BUY 1500 6.05 -9075.00
JUL9200 PUT SELL 1500 3.95 5925.00
-229800.00
RESULT -127350.00

MAX OPEN INT MOVED FROM 9400 TO 9700. HENCE I REPLACED
9400/9200 WITH 9700/9500
JUN9700 PUT SELL 1500 21.20 31800.00
JUN9500 PUT BUY 1500 8.80 -13200.00
18600.00
-3150.00
ADDL INCOME 15450.00
THIS TRADE IS LIKELY TO MAKE LOSS.
BY REPLACING UNAFFECTED SIDE(PUT SIDE) I HAVE TO REDUCE MY LOSS.

IRON CONDOR is not suitable for highly trending market. Hence I have to shift my trading activity to DIRECTIONAL CREDIT SPREAD
 
#55
POSITION ON 21/07/17
JUL9900 CALL SELL 1500 49.50 74250.00
JUL9700 CALL BUY 1500 211.00 -316500.00
JUL9700 PUT BUY 1500 5.65 -8475.00
JUL9500 PUT SELL 1500 2.00 3000.00
-247725.00

I closed this position with loss of Rs 247725/-.

In my opinion for trending market Directional Credit spread is suitable. And for trading market Iron Condor is suitable.

In trending market either of the side will be in trouble.
In highly trending market it will give severe loss.
One way to escape loss, as Nifty crosses sold strike, we have to buy futures. But I do not know the risk control in futures.

So, henceforth, I will try only directional credit spread.

I invite advises from experienced.
 
#56
I HAVE STOPPED MY TRADE IN IRON CONDOR
BUT I FIND DEVIATION IN FOLLOWING MY STRATEGY.
NOW I ADOPT MAX RANGE FOR PREVIOUS 6 MONTHS FOR IRON CONDOR TRADING
IRON CONDOR TRADE WILL BE CONTINUES AS PAPER TRADING
MY SELL STRIKES WILL BE OUTSIDE THIS MAX TRADE RANGE.
AS NIFTY TREND IS UP I WILL TAKE MAX OPEN INT IN PUT AS BASE

NIFTY RANGE
HIGH LOW RANGE
FEB 8892 8537 355
MAR 9218 8860 358
APR 9367 9075 292
MAY 9650 9269 381
JUN 9709 9448 261
JUL 10115 9543 572


MAX RANGE 572

MAX OPEN INT FOR PUT IN AUG SEREIS FOR STRIKE 9800
SO CALL STRIKE WILL BE 9800 + 572 = 10372 = 10400

SO IRON CONDOR PAIR WILL BE
9800 - 10400
AND HEDGE WILL BE 9600 - 10600
 
Last edited:
#57
CAPITAL 1870175
RISK AMOUNT 20% 374035
INVESTIBLE AMOUNT 1496140
IRON CONDOR PAIR FOR AUG 17 SEREIS
CALL 10400 15.20
PUT 9800 52.00
67.20 --A
HEDGE 200 POINTS AWAY
CALL 10600 3.90
PUT 9600 35.95
39.85 --B

INCOME:(A-B) 27.35
MAX LOSS (200-INCOME) 172.65
TRADEABLE POSITIONS(RISK AMT/MAX LOSS) 29
AS I REQUIRE RS 100000.00 MARGIN AMOUNT PER IC POSITION
I CAN TRADE 15 POSITIONS OF IC

ON 28/07/17
AUG 10600 CALL BUY 1125 3.90 -4387.50
AUG 10400 CALL SELL 1125 15.20 17100.00
AUG 9800 PUT SELL 1125 52.00 58500.00
AUG 9600 PUT BUY 1125 35.95 -40443.75

MAX PROFIT 30768.75
 

Subhadip

Well-Known Member
#59
CAPITAL 1870175
RISK AMOUNT 20% 374035
INVESTIBLE AMOUNT 1496140
IRON CONDOR PAIR FOR AUG 17 SEREIS
CALL 10400 15.20
PUT 9800 52.00
67.20 --A
HEDGE 200 POINTS AWAY
CALL 10600 3.90
PUT 9600 35.95
39.85 --B

INCOME:(A-B) 27.35
MAX LOSS (200-INCOME) 172.65
TRADEABLE POSITIONS(RISK AMT/MAX LOSS) 29
AS I REQUIRE RS 100000.00 MARGIN AMOUNT PER IC POSITION
I CAN TRADE 15 POSITIONS OF IC

ON 28/07/17
AUG 10600 CALL BUY 1125 3.90 -4387.50
AUG 10400 CALL SELL 1125 15.20 17100.00
AUG 9800 PUT SELL 1125 52.00 58500.00
AUG 9600 PUT BUY 1125 35.95 -40443.75

MAX PROFIT 30768.75
19 Lakh capital...risk 20%.......
R u sure???
 
#60
20% risk is too much.
Range for July 17 was very high. Therefore, July 17 IC trade would have been a losing trade anyway.
Taking too much RISK is not good.
From my next trade I will reduce RISK percentage to 10% and Hedge to 100 points away.
 

Similar threads