Option Selling during quarterly results

[sanju005ind]

Changed a bit with the coloring. Added the tool tips on top with Fut and Spot price. Can toggle on/Off individual columns(Call/Put). The vertical line shows the future price with respect to strike. Need to add a drop down on the top with Instrument and expiry dates so that it can pull off the data when required.

Toggled Chart on the bottom only Puts Change in OI is shown.

 

[landorra]

divergent views are always welcome.
As Bill Williams said " A trade happens when two people disagree on value and but agree on price".

An unquestionable truth, let I say.

 

[siddhant4u]

sanju bhai, another chart you could try plotting (if possible) is OI for both call and puts. It could give you some clues on where index is heading (specially on expiry or near expiry days).
Also, better to keep static data like Nifty/NF price, open positions on top instead of on hover of mouse.

 

[sanju005ind]

sanju bhai, another chart you could try plotting (if possible) is OI for both call and puts. It could give you some clues on where index is heading (specially on expiry or near expiry days).
Also, better to keep static data like Nifty/NF price, open positions on top instead of on hover of mouse.

Yes planning to put the NF and NS , max pain on top as static. But if i Put OI on top for each strike it will create clutter. OI chart you mean All OI combined or only certain strike OI. You mean something like this. They are using amcharts a paid library of java script. But i am using Python Bokeh. It should be possible. It will take time as I am not good at programming. A skill left 20 years ago.

 

[sanju005ind]

Closing all three call ladders. Ladder 1 and 2 achieved 80% of premium erosion. Ladder 50%. Since this secondary account had only 6.5 L as capital. today got a margin call. Looks like margins have increased. Starting Dec till march SEBI will be increasing margins. This particular technique was deployed since @siddhant4u bhai has asked if we can beat FD selling OTM calls. Demonstrated live with this technique. Will be shifting to Dec series now. This can be repeated month on month with not much of a fuss. This was started from Oct 14 and has achieved ate 5% of over all capital.
This can easily beat the FD many times over. attaching the combined screenshot. will not be posting any further trades for this strategy. But willing to discuss if anyone out there is doing it or has any questions.

 

[siddhant4u]

so to eat most of premium, sell at the beginning of monthly series snd close 12-15 days before (or when stoploss hits)

 

[sanju005ind]

so to eat most of premium, sell at the beginning of monthly series snd close 12-15 days before (or when stoploss hits)

Ideally I would like to sell 60 days before. If you plan to sell 10 lots break it down to 2 lots and keep selling each week near the .15 delta.Adjustments can also be made. In this case we could leave the calls there and shift the puts. But since I had margin call i thought close all since the IV's will fall anyway did not open the fresh positions. As for adjustments if the rally was strong then you would have to keep selling the puts higher and higher. mostly max two adjustments. Then close and repeat the entire cycle.

 

[Happy_Singh]

Ideally I would like to sell 60 days before. If you plan to sell 10 lots break it down to 2 lots and keep selling each week near the .15 delta.Adjustments can also be made. In this case we could leave the calls there and shift the puts. But since I had margin call i thought close all since the IV's will fall anyway did not open the fresh positions. As for adjustments if the rally was strong then you would have to keep selling the puts higher and higher. mostly max two adjustments. Then close and repeat the entire cycle.

Taking into account the new margin rules (after full increase till Mar'21) do you think
this will still remain similarly profitable strategy?
or maybe the premiums will also reflect this additional cost (of higher margin).

BTW, good work here

Maybe the posts would have attracted more views if the thread was named
Live demo of easily making 5% risk free every Month
or something of that sort

As you are not using this strategy on regular basis would it be safe to assume
that you consider this 50/60% performance as easily bettered by your other strats

Its lots of work to compile these kind of posts,

Thanks for sharing


.

 

[travi]

Taking into account the new margin rules (after full increase till Mar'21) do you think
this will still remain similarly profitable strategy?
or maybe the premiums will also reflect this additional cost (of higher margin).

BTW, good work here

Maybe the posts would have attracted more views if the thread was named
Live demo of easily making 5% risk free every Month
or something of that sort

As you are not using this strategy on regular basis would it be safe to assume
that you consider this 50/60% performance as easily bettered by your other strats

Its lots of work to compile these kind of posts,

Thanks for sharing


.

Margins are still pretty good as compared to before and var+elm wont affect F&O that much as we have seen bcos EQ intra 20X etc is mostly going to be cut-down.

So with the new hedged margin benefit, we already pay only half margin requirement for straddle / strangle.
Bcos only one side can be in "unlimited" risk side so Broker will collect only that much.

 

[siddhant4u]

Also to reduce margin, one can sell Call and buy another at far end to reduce margin..

technically making it Iron Condor instead of Strangle

yes there will be extra cost but you need 16 points to earn 2% profit. (strikes below are random without thought process just to calculate margin requirement)