Hi..
im giving case study writing both CE and PE of same stike price..
aim is to get profit frm diminishing time value ( in form of premium recvd)
attaching here excel sheet of Nifty 4100 stike price CE/PE of Feb series..whn mkt @4137
4100 CE write @108( upside 4208 )
4100 PE write @71 ( downside 4029)
if market expires in between ths range profit is very good...
This can go terribly wrong if mkt corrects too much (like ths mnth)..or go up to 4300 ..so Stop loss placement is very imp...
Logically to get 108 pts i can risk 30-40 pts so my upside SL would b 4250(4208+40) n downside SL would b 4010( 4029-20)..
Kindly go throu Excel attached herewith..
Experts plz guide ..n comments are requested.. n betr ways to place SL..
Sharestrader
im giving case study writing both CE and PE of same stike price..
aim is to get profit frm diminishing time value ( in form of premium recvd)
attaching here excel sheet of Nifty 4100 stike price CE/PE of Feb series..whn mkt @4137
4100 CE write @108( upside 4208 )
4100 PE write @71 ( downside 4029)
if market expires in between ths range profit is very good...
This can go terribly wrong if mkt corrects too much (like ths mnth)..or go up to 4300 ..so Stop loss placement is very imp...
Logically to get 108 pts i can risk 30-40 pts so my upside SL would b 4250(4208+40) n downside SL would b 4010( 4029-20)..
Kindly go throu Excel attached herewith..
Experts plz guide ..n comments are requested.. n betr ways to place SL..
Sharestrader