SHORT CALENDAR SPREAD : target - 10 to 20% Return On Investment

[pkabir30]

thanks rege, linkon

one thing i will make sure that i do paper trade for a month or two, then only try to put money
thanks
kabir

 

[pasha]

As was pointed by one of our members long ago, there is very little difference between a stock, future or option if the market moves against the position.
Options risk can be tightly controlled without stops, which cannot always be done with stocks and futures.

 

[linkon7]

Pasha, your strategy of buying the straddle....clicked.
Mine, of buying the june and selling the may 3700 call.... also put me in the right side of the market. If i would sell the june and buy the may call.... would put me on the wrong side as well.... second circuit likely soon,,,,

let see how it plays out.... My strategy of waiting for the euphoria to die down might take some time.... since its going to take some time for the cool off... shorts need to cover and people who missed going long will desperately try to get long.... so my poistion is wait and watch.... at 10.55, we might see a second circuit....

 

[linkon7]

my position now is very weird....
My broker called and said i have a technical margin call... :lol:


my positions as of now is :

long June 3700 call, bought at 222, has a LTP of 237, is at a profit of 5 points...
short may 3700 call, sold at 145 has a LTP of 601, is at a loss of 456 points...

Action : none...till now.... go to wait for the euphoria to die down and then decide future action...

 

[pasha]

Wish you guys had also got in with me on the straddle. I had posted it 3 days ago on Bandlabs thread. Tomorrow looks to be another frenzy with all the latecomers rushing in.

 

[linkon7]

market manages to surprise everyone. Every one was factoring in a fractured mandate. The toss was NDA or UPA, but such a table thumping victory...followed by a 20% hike in 55 sec.... well, its simply crazy.

I thought of buying a 3200-4000 strangle, shorting a 3400-3800 stangle, or for going for what i did...a calender spread with the lid open on the upside. If we would crash, then i would have to bear some losses... but with the huge cash waiting on the sidelines, i was hoping for a quick recovery.

I am happy with the way things played out. I think i'll be able to play this situation to my advantage. There are few combo that i want to use depending on how we play out tomorrow.

I am happy for pasha and few others who kept the losses limited and profits unlimited.

 

[pasha]

UC tomorrow is 5%, so we may have a freeze at the open.

 

[linkon7]

The way the broker house raised the margins... longs had to square off and as soon as we didnt get to the levels suggested by sgx nifty...(4500+), i decided to cut the short first.
Thankfully, it was a steady decline.... managed to trail the 3700 may call to 480 levels and finally hit sl at 500....

Now waiting for 3700 june call.... hopefully we will covr the100 points losses soon

 

[linkon7]

liquidity is pathetic..in june... and the price gaps... terrible....690 for buy 790 for sell...lol...

decided to square off at 690... too crazy for me to build on this....

 

[linkon7]

position so far :
May 3700 call sold at 145, covered at 500, loss of 355 points
June 3700 call bought at 222, cvered at 690, profit of 468 points

Net profit = 113 points

Not bad, considering the trike price is deeply In The Money.