Banknifty Weekly Zero Cost Collar Strategy

#12
BankNifty MAR Future is just 7 points above Spot price.. Still at 0 P/L
Closed BankNifty MAR Position and Bought APR Future which is at a much lower price closed 20 points to spot future.. It will surely go high to 50-60 points..
 

travi

Well-Known Member
#13
BankNifty MAR Future is just 7 points above Spot price.. Still at 0 P/L
Closed BankNifty MAR Position and Bought APR Future which is at a much lower price closed 20 points to spot future.. It will surely go high to 50-60 points..
You need to execute the option legs also at same time to maximize profit.
Few points change from spot will have a gap bcos options are priced from spot price.
 
#16
I doubt, this strategy will give money
if banknifty expires at say 20000
1) ce 21200 sold at 108 - expires worthless you earn Rs 108
2) pe 21200 sold at 155- expires ITM by 1200 ( 21200-20000=1200) less premium received 108 total loss Rs 937
3) Future sold at 21091 - expires with loss.
I would be happy to understand the calculations.
 

Purushotham

Well-Known Member
#17
I doubt, this strategy will give money
if banknifty expires at say 20000
1) ce 21200 sold at 108 - expires worthless you earn Rs 108
2) pe 21200 sold at 155- expires ITM by 1200 ( 21200-20000=1200) less premium received 108 total loss Rs 937
3) Future sold at 21091 - expires with loss.
I would be happy to understand the calculations.
The PE you mentioned is bought not sold.
 
#18
Hi

your strategy looks fine :)

just that BN Futures is quoted at Premium so even that will come down to SPOT
even then you will have good profit of say about ~ Rs. 50

Just a Thought

how about you Short BN Futures ( you will Gain on Premium between FUT & SPOT)
buy ITM Call and Short PUT at the same parity
 
#19
DEAR Dipu




You have made any excellent observation in your post. if you would care

to discuss further points you may contact me hereitself.


REGARDS


VIJU
 
#20
Hi VIJU123

I observed the above strategy for April Month and did not found it convincing

Premium what i receive on Shorting a Call and Buying Put on same parity in nullified by the premium difference between SPOT and FUTURES

even shorting BN Futures did not make sense

we never had profit but on the contrary we might have a Loss of 2 - 3 Rs.

would like to Know suryameet25's observation on this

Regards
 

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