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[amrutham]

Entered into below BN position(FY acct) for May24 expiry. This is a naked position without any hedge.

BN Spot @ 25730

Sell BN 26000CE 1 lot@65
Sell BN 25500PE 1 lot @60

Net Credit = 125*40 = 5K

 

[sagar_balla]

Entered into below BN position(FY acct) for May24 expiry. This is a naked position without any hedge.

BN Spot @ 25730

Sell BN 26000CE 1 lot@65
Sell BN 25500PE 1 lot @60

Net Credit = 125*40 = 5K

Is there any reason you think that bn will be in that range. I am asing this because you took naked positions.

 

[amrutham]

Is there any reason you think that bn will be in that range. I am asing this because you took naked positions.

For this week, the highest OI is at these levels.

Since only 3 days left for the expiry, unless there is a sharp move in BN, time decay will kick-in with these OTM options.

In the worst case also, these 1 lot naked positions can not do much damage to the account.

 

[anildnr]

For this week, the highest OI is at these levels.

Since only 3 days left for the expiry, unless there is a sharp move in BN, time decay will kick-in with these OTM options.

In the worst case also, these 1 lot naked positions can not do much damage to the account.

Your expectation correct ...hope u got some decent profit

 

[amrutham]

Your expectation correct ...hope u got some decent profit

BN Option premiums collapsed today. The position has already lost around 50% of the value. Lets see what happens in next two days.

 

[sagar_balla]

For this week, the highest OI is at these levels.

Since only 3 days left for the expiry, unless there is a sharp move in BN, time decay will kick-in with these OTM options.

In the worst case also, these 1 lot naked positions can not do much damage to the account.

Thanks for your reply. My earlier observations on BN is that it doesn't follow Options OI like Nifty and burned my fingers by taking positions like you.

 

[amrutham]

Thanks for your reply. My earlier observations on BN is that it doesn't follow Options OI like Nifty and burned my fingers by taking positions like you.

Thats why position size is very important in naked options writing. You should be ready to adjust your position when it goes into loss.

 

[anildnr]

Last 3 days of weekly expiry is perfect for banknifty options writing with hedged positions..no need to jump in very beginning itself just wait for 15 to 30 mins to get it stabilized and take positions..hedged position is only to face any sudden events in ist timings..if we are confident that no events occur then take short strangle at itm ce n itm pe.and takeout for every 100 points and take nextposition

 

[amrutham]

Entered in to below BN position for 24th May expiry.

BN spot @ 25950

Buy BN 25800 PE 400 Qty @ 128
Sell BN 25700 PE 800 Qty @ 96
Buy BN 25600 PE 400 Qty @ 72

Net debit = 128+ 72 - 192 = 8*400 = 3.2K

Max loss = 3.2K

Closed this position.

BN Spot @ 25880

BN 25800 PE 400 Qty @ 80
BN 25700 PE 800 Qty @ 45
BN 25600 PE 400 Qty @ 25

Credit = 6K

Net Profit = 2.8K

 

[amrutham]

Entered into below BN position for May 24th expiry.

BN Spot @ 25860

Buy BN 25700 PE 480 Qty @102
Sell BN 25600 PE 960 Qty @ 75
Buy BN 25500 PE 480 Qty @ 54

Net Debit = 102+54 - 150 = 6*480 = around 3K

This position can give good returns if BN trades in 25500 - 26000 range this week.

Adjusted this position.

BN Spot @ 25880

Sell BN 25800 PE 120 Qty@80. This is a hedge for the above long butterfly. Will close this if BN breaks 25700.

Credit = 9.6K

Net Credit = 9.6-3 = 6.6K.