Nifty Options Vertical Spread Trading

[ananths]

Current status of the spread,

6400CE/6500CE at 104/59. Difference 45. That is 8 points profit.

Will hold on to this spread.

 

[adg123]

Current status of the spread,

6400CE/6500CE at 104/59. Difference 45. That is 8 points profit.

Will hold on to this spread.

DEBIT or CREDIT Spread ?

 

[ananths]

DEBIT or CREDIT Spread ?

It's debit spread.

 

[ananths]

Current status of the spread,

6400CE/6500CE at 104/59. Difference 45. That is 8 points profit.

Will hold on to this spread.

Market gave up all the gains....some how I could smell the rat..and sold 6600ce at 24 and booked a profit of 10.5 points.
Now holding the spread.

 

[ananths]

Exited 6400CE/6500CE debit spread today at a cost of 20. Which is 17 points loss. However this loss is offset by adjusting (wrote 6600CE twice for 10.5+7.5) 18 points.

So no loss in this spread but missed a big chance in yday's fall.

Learning :- Need to book partial profit when its on the table or better exit the position when it looks like market going against and look for other opportunities instead of adjusting.

 

[ananths]

Spread trade again!!!!

Bot 6200ce/6300ce debit spread@ 57/31 for Feb series. Cost 26.

 

[adg123]

Spread trade again!!!!

Bot 6200ce/6300ce debit spread@ 57/31 for Feb series. Cost 26.

Like it...!

My Debit Spread (Call Backspread) Is CE6100/CE6200 @106 / 61 for February.
(It is my first WRITING Strategy, Lets see...)

 

[ananths]

Spread trade again!!!!

Bot 6200ce/6300ce debit spread@ 57/31 for Feb series. Cost 26.

Exited today morning at 66/35

5 points gain.

 

[ananths]

Like it...!

My Debit Spread (Call Backspread) Is CE6100/CE6200 @106 / 61 for February.
(It is my first WRITING Strategy, Lets see...)

Hi adg,

Call back spread is a bullish strategy with 1 lot 6100CE short and 2 lots 6200CE long.
What is your target and SL ?

Is time value(theta) against this strategy?

I exited call debit spread because I feel market is bearish. Unless market closes above 6150, I wont go for any bullish position.

I'm thinking of a put debit spread/put back spread/Naked 5800PE for next week.

No need to change your view based on my comments here..I'm not an expert to advice.

 

[Somatung]

Like it...!

My Debit Spread (Call Backspread) Is CE6100/CE6200 @106 / 61 for February.
(It is my first WRITING Strategy, Lets see...)

@Adg123

Your post is very confusing to read, as you completely mix up different strategies. You talk at the same time about three different strategies in just one sentence. Let me help you and let's clear up the mess you put on the table. Let's do it step by step. I will start with your debit spread, then let's look at the call back spread and finally at the writing strategy.

Here a Debit Call Spread which is f.e long one atm option and short one otm option. It looks like this: http://www.optionseducation.org/strategies_advanced_concepts/strategies/bull_call_spread.html and market should go up when using this strategy.

Here a Call Backspread which is f.e short one atm option and long two otm options. It looks like this: http://www.optionsplaybook.com/option-strategies/call-backspread/ and market must move up. If market stays in a side way range, you will lose the most and if market plums you are protected.

And here the last one of your three strategies you described as a writing strategy. This strategy is called Credit Call Spread which is f.e short one atm option and long one otm option. It looks like this http://www.optionseducation.org/strategies_advanced_concepts/strategies/bear_call_spread.html and market should go down when using this strategy.

Now we have a clean table and every strategy has found his place in a separate plate.