Trades on Option II

[munde_77]

Hi. Almost no loss or negligible loss Strategy.

Aim to make between 3 and 5 % monthly

Strategy will be If market is at 8000

Sell Nov CE 8100 -1500

Sell Nov PE 8100 - 800

Sell Dec PE 8100 - 1000

Sell Dec PE 7800 -1000

Buy Dec PE 7600 + 2000

Delta will be 250-50 = 200.


No Adjustments as far as Delta remains till 800 . There will be enough time for adjustment as adjustment is to be done for Dec month and not Nov month

So there will be enough time between 30 to 50 days for adjustment

:thumb:

 

[munde_77]

Most probably market will bounce back as we are in bull market. 200 to 300 points correction is normal. Even If market does not bounce back, downside is protected by ratioback spread. So the risk is limited on downside which can be adjusted , There are (100 s) many ways to adjust . We can write some more calls. We can cover higher strike Put and write lower strike Put. We can initiate bear spread also. We can initiate more ratio back spread also if need. For upside the there will be cushion of always around 50 to 150 points. and also the delta will always be positive say between 100 and 300.

This strategy was initiated yesterday and could not update due to lack of time.


I may not be active all the time. I may try to update as far as possible

Most of the time the adjustment is to be done between 3pm and 3.25 pm. No need to watch and glare at the screen continuously

 

[munde_77]

Covered 1000 Dec 8100 PE at at 120.7 sold at 168.55 on 26/10

Sold 1000 Dec 8200 PE at 157.76 (net after deducting brokerage)

Profit booked (after deducting brokerage) 47850

 

[munde_77]

Covered 800 Nov 8100 PE at 77.7 Sold at 130.38 on 26/10

Sold 800 Nov 8200 PE at at 118.8


Booked Profit 42144

 

[munde_77]

Profit booked 47850+42144= 89994

Notional loss on holding - 61884

Overall Profit on holding 89994-61884= 28110

Delta was +200 when strategy initiated on 26/10. Delta was -200 on 29/10.
After adjusting the Delta was 18 now the delta is -52

Wil bring l Delta into positive between 100 and 200 gradually.

Will also cover ratio back spread( 7800 pe and 7600) if nifty closes above 8160

Will initiate ratio back spread of 8000 and 7800. Will also write some PEs

 

[munde_77]

Profit in today s adjustment 8132

Planning to exit the trade as VIX has dropped significantly and holding position is also in good profit

 

[munde_77]

Almost getting around 3% return on Margin

Getting around 1.5% return on Capital as only less than 50% of the capital is used for trading.

Normally 35 to 45 % of the capital is used for trading

 

[munde_77]

Profit in today s adjustment 8132

Planning to exit the trade as VIX has dropped significantly and holding position is also in good profit

VIX shoot up back from -3.2% to .63.

Rough gain of VIX is 4%

 

[munde_77]

From Profit 10000 to -15000(Difference of 25000) loss as VIX index shoot up from -3.2% to 2.23%

A change of 5%. So there is change in premium of calls and put of 5%

Notional Loss on holding from -53000 to -78000 . Loss of around 25000 due to spike in VIX.

 

[munde_77]

Exited 2000 Dec 7600 PE at 26.52 Bought at 42.9 = -32760

Coved 1000 Dec 7800 PE at 50.7 Sold at 75.05 = 24350

Loss booked -32760+24350 = -8410