Kulkarni's stratagy

[vikas kulkarni]

vikas, it is not about who is right or who shall be proved correct!!! In all probabilities your call truns out to be on dot!! And anyone using it makes tons of money but still can you call it a "strategy"!! Maybe we buy insurence by taking some defensive positons too!!! What would you suggest if i wish to protect my self from the uncertainities of the market of which you must be much more aware than me !!!???
I would call it a hunch rather than a strategy!!! Please take the comments posted here in the right spirit!!!

dear karnani.u raise the right wuestion nothing wrong in that. If u want to minimise ur risk then by ifci 50 put and 60 call.along with this stratagy.

 

[rkkarnani]

dear karnani.u raise the right wuestion nothing wrong in that. If u want to minimise ur risk then by ifci 50 put and 60 call.along with this stratagy.

Thanks Vikas!! So if I calculate as per last traded rates on NSE :
-55 Call : 2.45
-55 Put : 3.00
+60Call : 0.80
+50Put :0.90

Would it be correct to say that our BEP would be : 51.25 and 58.75 (Your original levels were 49.55 and 60.45)
Our max profit is 3.75 if close is at 55. You had max profit also at 55 and it was the total premium collected.(Rs.5.45) as per NSE closing rates.
And we loose max : 1.25 irrespective of the close of IFCI at any level whatsoever in the present strategy!! Where as in the original it was theoritically unlimited.

I apologise before asking it but as you had mentioned your family history I dare it : Do ask your elders which of the two "trade" would they prefer!!! (I will readily delete this portion if you find it hurting your feelings!!)

I do know that people do trade the original 'strategy' suggested by you. They are either pure speculators or have a view on the direction of the market, in this case IFCI would not go anywhere from its present level till Oct expiry!!!

 

[rkkarnani]

I am attaching an Excel file with both the strategies analysed. Trust it is 'correct'.
The sheet can be used to test the levels in a multi leg Option strategy. It is quiet useful for people like me who are not much knowledgeable in Options!!!

Seems I have to delete some files b4 I am allowed to attach more!!
Trying to upload it and give the link!!

 

[vikas kulkarni]

current m2m=3000+

 

[AW10]

Thanks Vikas!! So if I calculate as per last traded rates on NSE :
-55 Call : 2.45
-55 Put : 3.00
+60Call : 0.80
+50Put :0.90

Would it be correct to say that our BEP would be : 51.25 and 58.75 (Your original levels were 49.55 and 60.45)
Our max profit is 3.75 if close is at 55. You had max profit also at 55 and it was the total premium collected.(Rs.5.45) as per NSE closing rates.
And we loose max : 1.25 irrespective of the close of IFCI at any level whatsoever in the present strategy!! Where as in the original it was theoritically unlimited.

I apologise before asking it but as you had mentioned your family history I dare it : Do ask your elders which of the two "trade" would they prefer!!! (I will readily delete this portion if you find it hurting your feelings!!)

I do know that people do trade the original 'strategy' suggested by you. They are either pure speculators or have a view on the direction of the market, in this case IFCI would not go anywhere from its present level till Oct expiry!!!

Yes, RKK, your calculation and interpretation is 100 % correct.
you can loose max 1.25 on this position (even if IFCI goes to 0 ot 100) or make max of 3.75 (if expriy is at 55).
That gives u RRRatio of 3:1.

Most of the time, we won't get the max profit on short straddle cause for that IFCI has to expire at 55. Identifying such a perfect close price in 10 days ahead of expiry is very very difficult.

Just put the trade and go on holiday.. Let time and expiry work for you.
I love this type of trade where we know the exact risk to the last paisa right before entering the trade. No worry about quarterly result, open gap, trend etc..

In my experience, finding this type of RRR is bit difficut in Nifty options. but stock options can give u many such chances..

Happy Trading

 

[vikas kulkarni]

mr.aw10 u can make some stratgies in nifty options also.

 

[vikas kulkarni]

current m2m 5000+ book part. profit.

 

[vikas kulkarni]

M2m 7000+ hope some members r benifited.

 

[munde_77]

Mr.aw10 this is an f&o stock.and there is no circuit filter for f&o stocks.

Ifci is high beta stock .It has the history of moving 30/40 % up or down in 2/3 days....It is high risk strategy . Better go with option index.....

 

[munde_77]

thanx friends.i note down ur comments.lets wait for result till expiery.

One or two times your strategy may be sucessful but not consistently.
In volatile market , this strategy will make you to lose in just one month what you might have earned in 6 to 8 months...........

Index options are less risky than high beta stocks..........