Monthly options writing

[Raj232]

Sold federal bank 215 PE at 1.8 today.
I will look for the conversion of this naked trade to a covered one if stock cash level crosses below 219.
Sharing my personal trade.
Overnight risk is involved in this trade.
Totally Risk free 2 percent returns are a bit impossible case in equity markets
Or to cover the risk , one can sell its 232.5 call.
Federal bank can give surprise soon.

Federal Bank is trading at around Rs 115 - 120 range

 

[Vivekra79]

I

Federal Bank is trading at around Rs 115 - 120 range

Sorry for typing mistake...
It's 115 PE ....not 215.
Sorry once again.

 

[Raj232]

I

Sorry for typing mistake...
It's 115 PE ....not 215.
Sorry once again.

No problem, we are human and mistakes are inevitable

 

[anml]

2% per month is quite low. 6% is what the target should be.. just saying.. but at least aim higher than 2%

Option chain on MCX exchange for gold (bullion) is quite promising
https://www.mcxindia.com/market-data/option-chain

It would be great to sell gold/bullion options while gold remains largely a rangebound commodity.

View attachment 23195

The volumes are quite low, so probably the premium would be on the higher side.

Hi Raj232 , currently banging my head to learn price actions in Equity , not aware of bullions , but please post your trades if possible , will come to know how you traded gold that options and how came out , as our member Headstrong told how you managed that illiquidity options , by side will get bullions knowledge , Thanks a lot in advance.

 

[anml]

what kind of opportunity are you talking about in selling options? i have sold weekly bank nifty options 25300 ce & 24700 pe. it's giving good return in 2 days only.

Hi Sarangsood ,hope exited your trade in gains , but how managed volatality on wednesday and yesterday , please post your trades if possible , now im doing safe hedging nifty options 1 lot , just for learning purpose , a good opportunity for me , if you post your weekly bnf trades and how manage sudden changes and how hedging if goes opposite ,(as bnf is a ghost especially on 25.10.17 , when FM announcement on infusion on psu banks )Thanks in advance.

 

[anml]

 

[anml]

Sold federal bank 215 PE at 1.8 today.
I will look for the conversion of this naked trade to a covered one if stock cash level crosses below 219.
Sharing my personal trade.
Overnight risk is involved in this trade.
Totally Risk free 2 percent returns are a bit impossible case in equity markets
Or to cover the risk , one can sell its 232.5 call.
Federal bank can give surprise soon.

Hi Vivekra , from yesterday Fedral bk looks heavy selling with volumes , now depends on monday opening and sustaining lows , next visible support at 110-111 , IMHO it looks not safe hedge trade , or may be its too early to say now itself , let see how goes , or did any adj than 132.50 call short ? if possible please post your adjustments made in this trade , Thanks a lot.

 

[anml]

 

[SarangSood]

Hi Sarangsood ,hope exited your trade in gains , but how managed volatality on wednesday and yesterday , please post your trades if possible , now im doing safe hedging nifty options 1 lot , just for learning purpose , a good opportunity for me , if you post your weekly bnf trades and how manage sudden changes and how hedging if goes opposite ,(as bnf is a ghost especially on 25.10.17 , when FM announcement on infusion on psu banks )Thanks in advance.

Hi anml, it's a very delicate art writing options. You have to be an active trader to do it. The whole point is that the delta should be neutral in your position at every price change in the index. This Wednesday banknifty rose around 500 pts but it didn't do it in one go. It took it's time throughout the day which allowed me to keep selling puts against my calls. Also the premiums were very high. It wasn't the case when recapitalization news came. But then again that week started with low premiums which wasn't worth selling and volatility was too high. I only carry my positions forward in profit but that week didn't allow me to do that. Hope this information helps you.

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[anml]

The whole point is that the delta should be neutral in your position at every price change in the index. but This Wednesday banknifty rose around 500 pts but it didn't do it in one go. It took it's time throughout the day which allowed me to keep selling puts against my calls. Also the premiums were very high. Thanks Bro , again can you please elaborate this delta neutral technique , how managed , all telling Delta neutral , but if you tell in which point delta crossed negative ,how much and to make neutral what option sold again? It wasn't the case when recapitalization news came. But then again that week started with low premiums which wasn't worth selling and volatility was too high. I only carry my positions forward in profit but that week didn't allow me to do that. Hope this information helps you.
Ok Thanks Bro.
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