is it possible:constant returns of 3-5% in one month

[gunsho]

Hers is an example if you were to initiate an Iron Condor today.
For PUT Credit spread, you would
SELL the July 4800 PUT and
BUY the July 4700 PUT.
For Call Credit Spread, you would
SELL the July 5500 Call and
BUY the July 5600 Call

For a net credit of 13.97 (or 698.5 for 1 Lot). The profit zone for this position is for NIFTY to stay between 4786 and 5514 by July expiration.

The range looks impressive. Generally it is very hard for Nifty to move out of the above range. Have few comments though.

• 700 by keeping 50000 for a month is like 1.4% ROI.
• Practically we can assume at least once in a year there will be a wild move ~500 points away from month open. In such situations, we are loosing 8%. So ideally, if we fail once in 8 months, we will end up eating our previous profits right?

I believe in all Straddles/Strangles/Condors, it will be attractive/effective only when we add the protective legs as market swings. Otherwise one failure is going to wipe out our previous gains.

 

[milkyblack]

Hers is an example if you were to initiate an Iron Condor today.
For PUT Credit spread, you would
SELL the July 4800 PUT and
BUY the July 4700 PUT.
For Call Credit Spread, you would
SELL the July 5500 Call and
BUY the July 5600 Call

View attachment 18017

For a net credit of 13.97 (or 698.5 for 1 Lot). The profit zone for this position is for NIFTY to stay between 4786 and 5514 by July expiration. By looking at the trading zone of NIFTY for last 3 months, it is clear that NIFTY has never approached these levels. Even projecting it forward, it seems highly unlikely that these numbers will be breached. See profit zone in chart below

View attachment 18018


The idea is to sit back the let time decay take its course. Your margin requirements are 5000-698.5 = 4301.5. If NIFTY ends up between these 2 numbers, your profit is 698.5 / 4301.5 or 16.24% - commissions.

Not bad for a fairly stress free trade.

Cheers and best of luck

OptionWin

Hi,

The margin req in this case is abt 32K as per my broker.
Can you pls throw some light how is it 5000 as per you?

Thanks

 

[gunsho]

Margins on spreads: When I get into a spread trade, I know what my Max Loss on that trade will be. The brokers I deal with honor that. I have no idea why certain brokers would charge more for a defined risk trade. I am sure they have their reasons but I would prefer brokers who understand the risks of a position better.

I would be really interested in knowing your broker. I do straddles/strangles every month and margin blocked is really a headache. Can you share who is your broker?

 

[gunsho]

Hi,

The margin req in this case is abt 32K as per my broker.
Can you pls throw some light how is it 5000 as per you?

Thanks

Who is your broker? 16K per lot is also attractive than mine (Zerodha)

 

[milkyblack]

Who is your broker? 16K per lot is also attractive than mine (Zerodha)

SMC

How much does Zerodha charge?

 

[gunsho]

SMC

How much does Zerodha charge?

Around 25000...

 

[milkyblack]

Around 25000...

With 16K I find it too much, 25K is like :clapping:

 

[warezwana]

is it possible:constant returns of 3-5% using options(stock/index) per month

name any options strategy which we can depend and get constant returns of 3-5 percentage of our investment.

Yes it is more than possible with the use of Options (Verticals) to see gains of 35-45% a month but of course it all depends on the markets. Current market Volatility lowers the potential profits but still 20%-30% should be a minimum monthly return in the current climate.

If the people I mentor don't make a 35% minimum in a month I am going through their trades looking at why not!

Why Verticals, because they can be adjusted into a number of other strategies such as Iron Condors and Butterflys if need be.

 

[saurabhjain2005]

Sorry, I may sound rude but my intention is to make a point here..

If anyone who puts his heart and soul in the market and take it as a study, read as much as he can, get knowledge on whatever he can lay his hands on even 20% is very easy to make , for example in mid of july, sell aug out of money call and put i.e. if nifty spot price is 5100, sell 4900P and 5300 call. With every passing day their values will reduce in a sideways market and you will get 2-3% even 10% in 5-6 days..But.......if market starts trending,then???????? Well, you need to be prepared and to be prepared you must have more strategies in your mind, you can't come and post on traderji then,will you? So, first get complete knowledge of your topic. Money is the hardest commodity to own and you need to work hard to make it...Then, you need not ask a question like this for sure..

Happy trading.

 

[ananths]

hi....no easy money in market...but if you are disciplined you can make 2 to 3% by selling deep out of the money call/put. Current month or next month options you can consider. However you need to keep a strict stop loss otherwise may lose entire capital.

You may decide on SL like this...if you have sold 4800PE..if market goes below 5000 strike price, cover your position. Otherwise wait until it expires.