Trading Stock Options :: Experimental

[findvikas]

Just a thought : Would it be less risky to trade equal positions in Call and Put. We select such stock which is in Uptrend to Buy Call and another stock in downtrend to Buy a Put! You use whatever parameters u are using to select the stocks but select stocks with opposing trends. Like : Buy Nifty Call and Buy Relaince Put (ofcourse if your parameters have given Buy in Nifty and a Sell in Reliance!!
This may be more true if the stocks are in the same Sector. People use this strategy to do "Pair Trading"!!

I will see if I get any pair trade to include. So far I do not see any stock looking for a good upside.

 

[AW10]

Good to see thread of my interest from you Vikas.
Will be watching it closely to see if stock options trading is worth my second look or I shd wait for some more months.

Happy Trading

 

[findvikas]

Thanks Bro... from my experience Trading (Buying) Nifty Options is profitable mostly in Intraday only while Stock Options are profitable mostly in Swing Trades. I love to experiment and this is just another such experiment.

 

[scplindia]

What do you think of Reliance, has it reached its target price or further up side is possible.

 

[findvikas]

Two trades done today...

ACC 950PA 29APR @ 30 , Stop @ 1025 in SPOT
AMBUJACEM 115PA 29APR @ 3 , Stop @ 125 in SPOT

Target is open.

Initial Capital 25000
Margin Used 23239.6
Margin Available 1760.4


(excluding any brokerage generated)

Closing the position in ACC, since the option was deep in money and no buyer I am assuming that we had to go for settlement... and settlement price came at 903.70

Total profit: 950 - 903.70 - 30 (Buying Cost) = 16.3 x 376 = 6128.8 (excluding brokerage)

I am going to continue holding the other position in AmbujaCem which is at a near 100% loss. No point of closing that.

Today's trades
ACC 920CA @ 8.5 (LTP) for April
RIL 1100CA @ 18.9 (LTP) for April

so current position is like this

ACC 920CA 29APR @ 8.5 , Stop @ 5.5 , Target @ 12-15
AMBUJACEM 115PA 29APR @ 3 , No Stop , No Target - Pure betting here
RIL 1100CA 29APR @ 18.9 , Stop @ 15 , Target 30-40

Initial Capital		25000
Margin Used		20825.6
Margin Available	10303.2
Realized P/L 		6128.8

 

[findvikas]

ACC 920CA 29APR @ 8.5 , Stop @ 5.5 , Target @ 12-15
AMBUJACEM 115PA 29APR @ 3 , No Stop , No Target - Pure betting here
RIL 1100CA 29APR @ 18.9 , Stop @ 15 , Target 30-40

RIL hit the SL and had to book at whatever it can give in return and closed the position at yesterday's opening near 8-8.5.. being conservative I am closing it at 7.5

Closed ACC today as it hit the target at opening and I closed the position considering the weakness in global market & near expiry. It traded above 924 for quite some time and I closed my order at 12. High was 12.5 and then it plunged near 901


So current positions

AMBUJACEM 115PA 29APR @ 3 , No Stop , No Target - Pure betting here

Initial Capital		25000
Margin Used		11959.6
Margin Available	17065.2
Realized P/L 		4024.8
Current Holding Value	206.2
Monthly P/L	       -7934.8

Key takeaways after 1 month... maybe selling OTM options is better for stocks but just because we got defeated once does not mean we lost the battle.. we lost just 30% capital while trading naked options.. that means we are good hope next month will be good.

Some changes to strategy.. do not hold any position OTM after 15-18th of the month depending upon the date of expiry, Hold only ITM positions.

 

[ravikumar1985]

Hi Vikas!
By the way what is OTM and ITM?

 

[findvikas]

OTM = OUT OF THE MONEY
ITM = IN THE MONEY

Please google for more info.

 

[findvikas]

New month started and capital is 17,065.20 or down by 31.74%

I did not get a chance to trade but had couple of them in my list. Like HINDPETRO 300CA which blasted today & INFOSYS 2750CA but then not placing here as I could not post it earlier and do not want to make it sound like now they have profited I am adding them to list.

Market gives you ample opportunity but only if you wait...

 

[findvikas]

Got myself 1 lot of BHARTIARTL 260CA @ 20 for June

Money used is 10,000 , cash in hand is 7,065.20