Path to Consistency

fnoQ

Active Member
Sbhadip bro , i have some queries abt options selling , but im not very well known abt greeks as you are telling in thread , just asking what i think, dont know whether correct or not , please give your valuble suggestions to me ,
1. selling both ATM call , put at expiry opening ( as at opening ATM is having highest time value which is profit to us while time decay say after some days say 10 -15 days or whole at expiry ) but this is applicable if nifty going to be expiry at same strkie , but its not possible , will go either up or down in some days say 10-15 days or in 2-3 days if any big trigger happens , in that situation we have get that time value also but have to be safe from either movement from that sold ATM strikes also , so we have to hedge either by (1)buying call put at support resistance levels what we feel for that expiry or again (2) sell call put at support resistance levels what we feel for that expiry .

just for example saying , let assume we are at expiry opening , nf at 9151 ,
9150 pe 120 , 9150 ce at 130 (if we sell we get 250 pts premium so not bother abt 250 pts movement , ) say we are expecting mkt support at 9000 and 9300 may be 9000 pe at 50 and 9300 ce at 60 , if we buy or sell these for hegde shall we get 100- 150pts in this combo ?
shall we get safe decnt returns ?
another one also which i posted in january 23 , buying NF , sell ATM call , buy ATM put , selling 2 lots lower strike put ie 200 pts to adjust the premuim we spent in buying ATM put , but there also needs some adjustment if goes below that lower put sold ,
this is the first query posted here in traderji , came for that then now following your pivots thread , but pivots woring hard ... going on , besides that till learn , looking for safe returns for month .
 
Last edited:

fnoQ

Active Member
if we come to present april series , gap support between 8990-9020 , and high made (resistance) at 9270 , also highest OI at 9300 call and highest OI at 9000 put.(what i see range at 9000-9300) if we sell these 9300ce and 9000pe how to hedge this trade and try to get safe returns here ( but already half days gone in this series premium / time value decayed already ?) , or any other trades at present minimum safe returns ?
 

Subhadip

Well-Known Member
Sbhadip bro , i have some queries abt options selling , but im not very well known abt greeks as you are telling in thread , just asking what i think, dont know whether correct or not , please give your valuble suggestions to me ,
1. selling both ATM call , put at expiry opening ( as at opening ATM is having highest time value which is profit to us while time decay say after some days say 10 -15 days or whole at expiry ) but this is applicable if nifty going to be expiry at same strkie , but its not possible , will go either up or down in some days say 10-15 days or in 2-3 days if any big trigger happens , in that situation we have get that time value also but have to be safe from either movement from that sold ATM strikes also , so we have to hedge either by (1)buying call put at support resistance levels what we feel for that expiry or again (2) sell call put at support resistance levels what we feel for that expiry .

just for example saying , let assume we are at expiry opening , nf at 9151 ,
9150 pe 120 , 9150 ce at 130 (if we sell we get 250 pts premium so not bother abt 250 pts movement , ) say we are expecting mkt support at 9000 and 9300 may be 9000 pe at 50 and 9300 ce at 60 , if we buy or sell these for hegde shall we get 100- 150pts in this combo ?
shall we get safe decnt returns ?
another one also which i posted in january 23 , buying NF , sell ATM call , buy ATM put , selling 2 lots lower strike put ie 200 pts to adjust the premuim we spent in buying ATM put , but there also needs some adjustment if goes below that lower put sold ,
this is the first query posted here in traderji , came for that then now following your pivots thread , but pivots woring hard ... going on , besides that till learn , looking for safe returns for month .
if we come to present april series , gap support between 8990-9020 , and high made (resistance) at 9270 , also highest OI at 9300 call and highest OI at 9000 put.(what i see range at 9000-9300) if we sell these 9300ce and 9000pe how to hedge this trade and try to get safe returns here ( but already half days gone in this series premium / time value decayed already ?) , or any other trades at present minimum safe returns ?
Yes u can sell ATM CE & PE of next month series tomorrow. Almost 45 days till expiry. It is good time.

Just have to hedge well.

Like now may NF at around 9200.

So sell 9200 call and put.

You can hedge by buying 9000 put and 9400 call.

All same quantity.
 

travi

Well-Known Member
There is nothing called safe return. If I or anyone knows that we would have been doing that only.

U have to take risk. We can control risk.
hehe, back in the old days we had the bears and the bulls.
This era is for those who sell both puts n calls.
we need a new term for them :p
 

Subhadip

Well-Known Member
hehe, back in the old days we had the bears and the bulls.
This era is for those who sell both puts n calls.
we need a new term for them :p
But there is a problem if not hedged and sold put. Very risky.
 

VJAY

Well-Known Member
Dear Subhadip bro,
Is this NSE decreased charges effecting in option trades?
 
Last edited:

travi

Well-Known Member
I've been trying a few strategies and they all seem to work.
Challenge is still in ROCE.

Strategies which have higher delta legs are more prone to loss then low delta legs.
Problem is the amount of margin blocked for writing 0.2 delta appears to be not worth it although winning rate is like 80%.

I think Traders who maybe losing consistently maybe selling a lot of ATM trying to scoop higher premiums but exposing risk probability.
 

Similar threads