Nifty Options Vertical Spread Trading

[healthraj]

Closed the spread with a loss.

Long 5900PE @ 40 (8*) = -32
Short 5800PE@ 21 (11*) = +10
Short 5850PE @15 (6*) = +9

Net P/L = -13 points.

This month debit spread is not working....No more spread for november series. So this thread will be updated only next month!

All the best!

My opinion from my observation in the last 5 months is as follows.

First of all IV plays an important role in deciding the Debit or Credit Spreads.
Increase in IV helps Debit Spreads
Decrease or Flat IV helps Credit Spreads
IV tends to Go down in an UP market
IV tends to Go UP in a DOWN market

So when the Trend is UP - Try Credit Spreads
When the Trend is DOWN - Try Debit Spreads

 

[gmt900]

The last week before Nov expiry has begun. Max Pain for nifty i @6200.
I have entered into long Butterfly trade as follows;
Sold 6200CE 70.50
6200PE 50.50
Bought 6300CE 25.00
6100PE 21.00
Max Profit 3,750
Max loss 1,250

Let's see how it goes. I may square off positions if there is a profit of @1,800 before expiry.

Immediatel after I took positon, nifty tanked. Squared off with a loss of 5 points on 22 Nov.

 

[ananths]

Entered a put spread today,

Buy 5900PE @50
Sold 5800PE @35

Total cost 15 points.

I will convert this to a ratio spread by selling more 5800PE if IV starts falling.

Today closed a call spread 6300/6400 with a profit of 7 points.

Did not update this thread for some time now....will be active again.

 

[ananths]

Entered a put spread today,

Buy 5900PE @50
Sold 5800PE @35

Total cost 15 points.

I will convert this to a ratio spread by selling more 5800PE if IV starts falling.

Today closed a call spread 6300/6400 with a profit of 7 points.

Did not update this thread for some time now....will be active again.

Exited the position,

Buy 5900PE @50 (25) = 25
Sold 5800PE @35 (15) = 20

Net P/L = -5 points

 

[ananths]

Bot 6100/6000 put spread today at a cost of 24.

Not getting enough time during market hours to update here. Also not into spread trades these days because of high cost.

 

[DanPickUp]

Bot 6100/6000 put spread today at a cost of 24.

Not getting enough time during market hours to update here. Also not into spread trades these days because of high cost.

Have not shown up here for a while and not plan to do so in the future. Still I wish you a very nice Christmas evening and take care. DanPickUp

 

[ananths]

Have not shown up here for a while and not plan to do so in the future. Still I wish you a very nice Christmas evening and take care. DanPickUp

Hi Dan,

Happy Christmas!..

 

[ananths]

Bot 6400/6500 debit call spread at a cost of 37.

 

[ananths]

Bot 6400/6500 debit call spread at a cost of 37.

Added another short leg 6600ce sold at 27.
Currently total position is in a profit of 5 points.

 

[ananths]

Bot 6400/6500 debit call spread at a cost of 37.

Added another short leg 6600ce sold at 27.
Currently total position is in a profit of 5 points.

Closed 6600CE at 19.5. Profit 7.5 points per lot :thumb:
Holding the spread.