Trading for Living -- Successfully Completed one year as Full Time Trader

[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

Closed this position.

BN Spot @ 25800

BN 26000CE 1 lot@15
BN 25500PE 1 lot @15

Net Profit = 3.8K

 

[amrutham]

Entered into below BN position(FY acct) for May31 expiry. This is a naked position without any hedge.

BN Spot @ 25800

Sell BN 25200PE 1 lot@55
Sell BN 26200CE 1 lot @40

Net Credit = 95*40 = 3.8K

 

[amrutham]

Hedged this position.

NF Spot @ 10600

Sell 10600 CE 300 Qty @ 92

Credit = 27.6K

Now this position is safe until 10500 downside.

Hedged this position again.

NF Spot @ 10450

Sell 10400 CE 150 Qty @ 92

Now this position is safe until 10400 downside

 

[amrutham]

Below is the expiry day trade taken.

BN spot @ 25720

Buy BN 25700 CE 600 Qty @ 40.5
Sell BN 25800 CE 1200 Qty @ 12.5
Buy BN 25900 CE 600 Qty @ 2.5

Net Debit = 40.5+2.5-25=18*600 = 10.8K

Max Loss = 10.8K

 

[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.

Closed this position,

BN Spot @25750

BN 25700 PE 480 Qty @30
BN 25600 PE 960 Qty @ 7
BN 25500 PE 480 Qty @ 1.5

BN 25800 PE 120 Qty@81

Net Profit = around 5K

 

[amrutham]

Below is the expiry day trade taken.

BN spot @ 25720

Buy BN 25700 CE 600 Qty @ 40.5
Sell BN 25800 CE 1200 Qty @ 12.5
Buy BN 25900 CE 600 Qty @ 2.5

Net Debit = 40.5+2.5-25=18*600 = 10.8K

Max Loss = 10.8K

Closed this position.

BN spot @ 25800

Buy BN 25700 CE 600 Qty @ 85
Sell BN 25800 CE 1200 Qty @ 28
Buy BN 25900 CE 600 Qty @ 4

Net Credit = 89 - 56 = 33*600 = around 20K

Net profit = 9K

 

[superman]

Closed this position.

BN spot @ 25800

Buy BN 25700 CE 600 Qty @ 85
Sell BN 25800 CE 1200 Qty @ 28
Buy BN 25900 CE 600 Qty @ 4

Net Credit = 89 - 56 = 33*600 = around 20K

Net profit = 9K

This is an awesome trade !

I see you normally take these butterfly type positions,, Challenge in these positions is the target IV or estimated option price when the strike of middle is breached. How you make sure that you can get out with profits even if its breached ? Any calculations you do before initiating trade like this ?

 

[amrutham]

This is an awesome trade !

I see you normally take these butterfly type positions,, Challenge in these positions is the target IV or estimated option price when the strike of middle is breached. How you make sure that you can get out with profits even if its breached ? Any calculations you do before initiating trade like this ?

On expiry day, whenever the price reaches middle strike, you can close your position with a credit of 30-40 points. The key here is entering the position with a initial debit of less than 20 points.
If the price moves opposite to your trade, then you can hedge the position to minimize the loss.

 

[sangram1705]

On expiry day, whenever the price reaches middle strike, you can close your position with a credit of 30-40 points. The key here is entering the position with a initial debit of less than 20 points.
If the price moves opposite to your trade, then you can hedge the position to minimize the loss.

I am into paper trading this weekly strategy. What i observed that my profit making trade went into loss today. So apart from the observation u posted yo close the trade at 30-40 pts credit.
Is there any other study u performed like closing a trade @ the percentage of max profit for consistent performance.

 

[amrutham]

I am into paper trading this weekly strategy. What i observed that my profit making trade went into loss today. So apart from the observation u posted yo close the trade at 30-40 pts credit.
Is there any other study u performed like closing a trade @ the percentage of max profit for consistent performance.

I do not keep any profit targets and close the trade if I it is in reasonable profit of at least 10 points. It all depends on price action and time remaining in the day. There is no fixed rule.

I have seen the days where after I close my trade, the position goes into the profit of 40K-50K (BN closes at mid strike) or it goes into losses. So in my case I take the small profit and sit out.