Low Risk Low Returns- Target 50 NF per month per NF Lot

[jamit_05]

Re: FnO Portfolio - II

Initial Position:
NF 11*50* (7633-7570)= 34k
75PE Dec 30*50*(-184+154)= -45k;


Adjustments:

Covered Transactions:
-------------------------------
Covered
SOLD 50 76PE SEP@116 @80; 1.8k;

Total Gained: 114.4k
Distance from Weekly target: 17.6k (26 init)


Open Lots
Initial: (15-4) lots NF and 30 lots 75PE DEC.

SOLD 50 77CE OCT@220; (if price goes up, and remains there, I will have collected 10k)
SOLD 50 77CE OCT@232;

SOLD 100 79CE OCT@170;
SOLD 100 79CE OCT@154;

 

[jamit_05]

Re: FnO Portfolio - II

Initial Position:
NF 11*50* (7633-7570)= 34k
75PE Dec 30*50*(-184+154)= -45k;


Adjustments:

Covered Transactions:
-------------------------------
Covered
50 79CE OCT@154 @165: loss 500;
SOLD 100 79CE OCT@170 @160; BE
SOLD 50 79CE OCT@154 @ 160; BE
SOLD 50 77CE OCT@220; @ 275; -2500
SOLD 50 77CE OCT@232; @275 -2500
SOLD 50 78CE OCT@193; @ 211; -1000

Sold 50 NF @ 7790: Gain 7790-7570=11k;
Sold 150 NF @ 7785: Gain 7785-7570=32k;

Total Gained: 125k

Open Lots
Initial: (15-6) lots NF and 30 lots 75PE DEC.

 

[jamit_05]

FnO Portfolio II has served its purpose.

Will go ahead and launch a slightly different one, and see how it behaves.

FnO Portfolio III:

Buy 10 Lots Sept NF @ 7800
BUY 20 Lots Oct 78PE @ 152

Targets:

78PE+78PE+NF premium+Profit
152+152+36+60=400 nifty points to be recovered per lot; i.e. a total of 4000 pts from 10 lots.

Therefore,
On upside: 7800+400 is the target.
On Downside: 150+250 is the target.

This is will be the plan. However, if market does not move as much, then will rollover at expiry. Hopefully, by that time I will have recovered the cost of time decay+profit, which would be:

36+36+30+58=160 pts; For 10 lots, I'd need to recover 1600 pts.

Therefore,
On upside: 7800+160 would be the target (more achievable, eh!)
On downside: 152+30+58=240; (workable too).

 

[jamit_05]

Diary Part 2.

Long: 10 Lots NF 11500
Long: 20 Lots Nov 11500 PE Rs.200


Rs.600000 NF Margin
Rs.300000 Options Premium
Total Rs.9L
**No Real investment is made. This is experimental.

 

[MaxX]

Why not just buy a call instead of buying NF and buying puts..

 

[jamit_05]

Why not just buy a call instead of buying NF and buying puts..

They are costly, are trading at a huge premium. In the next down leg this premium will vanish.

 

[jamit_05]

Position:
Long: 10 Lots NF 11500
Long: 20 Lots Nov 11500 PE Rs.200

Action:
Short: 1 lot Nov 11300 PE Rs.187
Collected: Rs.14000

 

[jamit_05]

Position:
Long: 10 Lots NF 11500
Long: 20 Lots Nov 11500 PE Rs.200
Short: 1 lot Nov 11300 PE Rs.187
Collected: Rs.14000

Action
Short: 1 lot Nov 11200 PE Rs.177
Collected: Rs.13275

Total Collected: Rs.27275

Keen on shorting these covered puts, and collecting decent premium. Market is in up trend on weekly charts and hence likely to touch 12000 before October closing, which is when I will rollover.

 

[jamit_05]

If Nifty goes further down to 11000, I will be inclined to Buy NF/PE, a covered NF as I will be bullish from this level.

 

[jamit_05]

Position:
Long: 10 Lots NF 11500
Long: 20 Lots Nov 11500 PE Rs.200

Short: 3 lots Nov 11000 PE@ 126
Collection: Rs.28350

Realized that, Nov 11300 is 180 and 11000 is 126. For 54 points less, I get a 200 point spread in strike price.
11000 is also a strong support. So I expect November to close above it.