Premium Eating Strategy - BankNifty Weekly Options

[jetking]

You are on right path brother.

But I will not go further up.

Does it mean, that you will not adjust this position further.. And like your other strategy, only two adjustment are possible..?

 

[mycall]

Does it mean, that you will not adjust this position further.. And like your other strategy, only two adjustment are possible..?

It depends upon the movement... my intention is to adjust delta a bit and narrow down the range... 1st Aug is RBI policy... and 2nd is our expiry...

This euphoria is due to this policy... after govt's win in confidence motion... perception changed... along with that RBI policy (1st Aug) is there... so some great expectations among participants are getting reflected in market... NF already broken last life high and BNF is on the verge of breaking...

So I am taking my chances by adjusting delta a bit and primarily narrowing down my buy range so that if some knee jerk reaction comes on 1st Aug... I am not caught at the wrong foot here...

In my position shifting strike is a risky affair... that makes my short strikes to overlap... blocks some points off my plate... in case it reverses..

Also as I said earlier... option trading is a psychological game... maximum manipulation done using options only... during such events retail traders like us get interested in deep OTM options to earn quick buck... big players are very very wise to gauge that mood...market makers are pressed into service... smart money comes in... and then we know what generally happens in the end...

And like your other strategy, only two adjustment are possible..?

No... both the strategies are completely different...

 

[jetking]

Shifted short 27500PE to 27600PE (@412.60) (30Aug)
Profit booked: 52.65 (432.65-380)

Shifted buy 26800CE to 27000CE (@22.95) (2nd Aug)
Loss booked: 10.1pts (22.5-12.4)

Any update on this trade, mycall.......??

 

[mycall]

Any update on this trade, mycall.......??

No updates there to be made.

This week has an event pending. RBI policy. Premiums are still high. Let's see what is there for us tomorrow.

 

[mycall]

Shorted 30Aug 27800ATM PECE... credit pts 819

Shifted 2Aug 27000PE to 27400PE

 

[slah04]

Shorted 30Aug 27800ATM PECE... credit pts 819

Shifted 2Aug 27000PE to 27400PE

Dear Mycall
Was the 2 Aug PE short or long?

 

[mycall]

Dear Mycall
Was the 2 Aug PE short or long?

Long.

This is a combination of positions... not stand alone trade...

 

[mycall]

30Aug position shifted from 27800 to 27700 with a credit benefit of 4pts

2nd Aug 28100CE shifted to 28000CE

 

[mycall]

Closed all positions.

Carrying positions (30Aug):
25000CE short @ 427.30 > Closed @ 381.15 = Gained: 46.15pts
25600PE short @ 412.6 > Closed @ 463.75 = Lost 51.15 pts
Previous gains by shifting: 64.4 pts [11.75 (shifting 27400PE to 27500PE) + 52.65 (shifting 27500PE to 27600PE)]

Gain in this position: 59.4pts

27700PE short @ 401 > Closed @ 515.4 = Lost 114.4pts
27700CE short @ 413.05 > Closed @ 286.3 = Gained: 126.75 pts
Previous loss by shifting: 4.35 pts (shifting ATM from 27800 to 27700)

Gain in this position: 8pts

Carrying positions (2nd Aug):
28000CE bought @ 23.85 > Closed @ 0.35 = Lost: 23.4pts
27400PE bought @ 22 > Closed @ 55.6 = Gained: 33.6pts
Previous loss by shifting: 39.05 pts (for shifting PE from 26600PE to 27400PE and 28100CE to 28000CE)

Loss in this position: 28.85

Total Profit: 38.55pts

 

[mycall]

Position:
30Aug Short 27600PE+CE total credit pts 740

9Aug Vertical Bull Spread at 27900CE and 27400PE total debit pts 39.65