Low Risk Options Trading Strategy

[pkusingh]

Lets discuss some FNO strategy.

I have created a portfolio of puts, it looks interesting to me. Guys.. what's your opinion about this?

Derivative 	put	put	put
strike	4900	4700	4600
qty	1	3	2
premimum	105	44.25	28.1
Position	1	-1	1

-1 indicates short position.
Investment 28.45
Brokerage 7.2
Total Risk 35.65

payoff
Nifty Payoff
4563 -35.65
4573 -35.65
4583 -35.65
4593 -35.65
4603 -29.65
4613 -9.65
4623 10.35
4633 30.35
4643 50.35
4653 70.35
4663 90.35
4673 110.35
4683 130.35
4693 150.35
4703 161.35
4713 151.35
4723 141.35
4733 131.35
4743 121.35
4753 111.35
4763 101.35
4773 91.35
4783 81.35
4793 71.35
4803 61.35
4813 51.35
4823 41.35
4833 31.35
4843 21.35
4853 11.35
4863 1.35
4873 -8.65
4883 -18.65
4893 -28.65
4903 -35.65
4913 -35.65

 

[Pralhad]

I have checked your calculation and its perfect :clapping:

Maximum Reward @ 4700 Lvl and around 165 Points
Maximum Risk is 35.65 (including your brokrage Rs. 60 Per lot)

So Reward to Risk ratio = 4.63/1 :clapping:

Your Upper Breakeven = 4863
Your Lower Breakeven = 4620
Nifty Range = 240

I myself is newbie, but Option guru AW10 will give more insightful for this strategy :clap:

 

[pkusingh]

I have checked your calculation and its perfect :clapping:

Maximum Reward @ 4700 Lvl and around 165 Points
Maximum Risk is 35.65 (including your brokrage Rs. 60 Per lot)

So Reward to Risk ratio = 4.63/1 :clapping:

Your Upper Breakeven = 4863
Your Lower Breakeven = 4620
Nifty Range = 240

I myself is newbie, but Option guru AW10 will give more insightful for this strategy :clap:

Thanks for your calculation.

 

[Pralhad]

I think AW10 sir enjoying Holidays with his Family. For time being here is Payoff Chart for this Strategy at the end of expiry day

 

[AW10]

Hi Prahlad..I was enjoying weekend with family. We don't have to wait for that HOLIDAY to have fun... not just the Weekend, I don't like to miss even the evening with my family (specially 2 yrs old son).

Happy Trading

 

[pkusingh]

just did a trade

F2 tatamotors buy 780.4
O1 short call 820 @22
o1 put 800 @ 35

 

[simple_trader]

Mr pkusingh,

About your first strategy, is it not a better to just buy one lot 4900 PUT than those 6 positions?

I must tell you, that I do not have much knowledge in option trading. But I feel buying 1 4900 PUT seems to be better than your strategy.

Please correct me if I am wrong.

 

[pkusingh]

just did a trade

F2 tatamotors buy 780.4
O1 short call 820 @22
o1 put 800 @ 35

Brok(including sq off) 550-/

Minimum gain will be 19.6-discount of the next to next month future at expiry.

Total risk=(35-22)*850+discount risk -19.6*850-550=discount risk -5060

Max profit pts 39.6

Max profit 39.6*850-(35-22)*850-discount risk -550=23160-discount risk


payoff Range is
5060-discount risk to 23160-discount risk