Option strategy quarterly

[Sidz]

Dear Sidz
I am not comfortable buying 400 point OTM option. That's why i have mentioned :- 3. will keep shorting (ATM-100) on every 3th close above ATM strike.

Yadavji,
The 58 I have added would be an added investment from the 200+ premium I am generating. This would also act as a shock absorbent if market opens with a gap up of 100+ points during the period. Furthermore, we when 58 becomes 100 or something considering bull market, sell it.

 

[doonyadav]

ok got it.

 

[Subhadip]

Dear Subhadip
1. I want to buy Dec 10500 pe = 450
2. I want to short Dec 10000 pe = 230
3. will keep shorting (ATM-100) on every 3th close above ATM strike.

Please tell is it good strategy in present scenario? or suggest something better.

Be careful...as it is Delta negative...also any rise in VIX will hurt you as u r shorting PE when VIX is lifetime low....

What do u want..a bullish strategy..

Then go for long in next month deep ITM call and short this month ITM call.

For example
Long September 9500 CE
And short Aug 10000 CE.
Both same quantity...

 

[Subhadip]

Be careful...as it is Delta negative...also any rise in VIX will hurt you as u r shorting PE when VIX is lifetime low....

What do u want..a bullish strategy..

Then go for long in next month deep ITM call and short this month ITM call.

For example
Long September 9500 CE
And short Aug 10000 CE.
Both same quantity...

Also u can go for future long
With ATM call short

 

[travi]

After rolling up the PE, are you closing position or keeping it open ?
Eg.
if you sell 9900 PE, mkt goes up 100pts, then you short 10k PE but do you cover 9900PE ?

 

[doonyadav]

Be careful...as it is Delta negative...also any rise in VIX will hurt you as u r shorting PE when VIX is lifetime low....

What do u want..a bullish strategy..

Then go for long in next month deep ITM call and short this month ITM call.

For example
Long September 9500 CE
And short Aug 10000 CE.
Both same quantity...

My idea is to sell current month ATM puts dec pair will give hedge to the short pe. But i have no idea of greeks thats why asked you.

 

[doonyadav]

After rolling up the PE, are you closing position or keeping it open ?
Eg.
if you sell 9900 PE, mkt goes up 100pts, then you short 10k PE but do you cover 9900PE ?

No need to cover 9900pe until 70-90% premium erode or the strike taken by nifty convincingly

 

[doonyadav]

Adjustment is overdue because 10000 crossed convincingly. But will wait for 2 Aug credit policy.
So no change in positions.
Status on 31.07.2017
Sep 10000pe = 127
Aug 9900 pe = 62
Profit (Notional) = 29 points

 

[doonyadav]

could not make adjustment today. Lets see tomorrow.

 

[arpit.25277]

could not ma adjustment today. Lets see tomorrow.

Hi there,
I have a question. ..
Suppose market is right now @10150
So your positions will be like this:-
10500 put long
And 9900 pe,10000pe and 10100pe will b short...and if market falls then due to rise in vix and 1 put buy and 3put sell u r delta may b above 1 means positive delta..u may experience lose..correct me if I.m wrong....