Paper Trade of Options

[kiran_thiru]

Wow !!! Looks like a day of typos for everyone

I made one, Kiran made one too..

i am not made typo in writing. i made mistake in trade. so loss happen.

 

[munde_77]

Bought BNF 50 at 1148.55. Covered BNF 25 Dec 11100 pe at 328 and BNF 25 Dec 11100 ce at 481

 

[munde_77]

Bought BNF 50 at 1148.55. Covered BNF 25 Dec 11100 pe at 328 and BNF 25 Dec 11100 ce at 481

Have bought 75 pe and 25 ce


so total 100 pe bought and 50 ce bought

 

[munde_77]

I am using contra strategy, trying to beat market and mutual fund returns.

Will use option repair strategy when needed, if market goes down too much, otherwise just hold for long term. Trying to buy 1 bnf lot at every 200 to 300 points down.

If bnf goes down more than 1000 points , will stop adding and will use option repair strategy either by selling calls or buying put. Normally I will buy 1 lot in the money call and sell 2 lot atm or slightly higher strike price than atm. Sometimes I will use backspread pe ratio also

 

[munde_77]

Have bought 75 pe and 25 ce


so total 100 pe bought and 50 ce bought

Bought 100 pe at avg ratte 347.5 and 50 ce 475.5

No profit , No loss in Pe

Loss in dec 11100 ce 50 = 343.5-475.5= -132+1=133 x 50 = -6650

 

[munde_77]

Covered Bnf 11700 dec pe at 202 so 280- 202 =78-1= 77 points profit

So 77 x 100 = 7700 points profit

Overall Profit Booked 4100 + 7700 = 11800

Loss booked 6650

So Overall 11800-6650= 5150 Net profit till now

 

[munde_77]

Notional Profit/ Losses in Holding BankNifty dec 11300 in ce and pe

ce 319.60, pe 421.6 total 741.2 rounded to 740

cmp ce 260+478 = 738 ,

So notional profit in dec ce and pe is 740-738 = 2 rounded to zero Nil

So Profitable if it is between 10560 AND 12040

Breakeven 11300+740 = 12040 and 10560 . So Profitable if nifty closes between 10560 and 12040. If it closes below 10560 , I am buying at roughly 7% discount.
If it goes down drastically , I will use option repair stategy.

 

[munde_77]

Notional Profit /Loss in Holding bank nifty dec 11100 ce and pe

50 ce 343 and 100 pe 346

cmp ce 343.75 and pe 415

loss ce = nil pe loss 346-415 =69 x100=- 6900

Uppper Breakeven 11100+ (343+346+346) +1035 = 12135
Lower Breakeven 11100- (343+346+346= 1042/2=517) 517 = 10583

So Profitable if it is between 10583 and 12135

 

[munde_77]

Notional loss in bnf 50 holding at 11050- cmp 10938= 112 x 50 = -5600

 

[munde_77]

Bought 150 bnf dec 10600 pe at 220 and Sold 75 bnf dec 10900 ce at 418.

Bought to pe as i want to protect from downside as i have sold 200 pe .
I bought the 150 pe 10600 by selling 95 ce 10900. My downside is completely protected now. Even if market crashes , still I will be in profit of 13112. Upside breaeven is 11632 . I used the money of ce to buy pe
For that I am holding 50 bnf and cover 11300 pe and write higher pe. Will adjust positions accordingly. Preserving capital is more important than capital appreciation