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| Discuss 3 Option Strategies Tested Here at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Originally Posted by nareshch I do not see any profit in these strategies until unless ... |
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#22
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iam making money on strangle from long time...yes time decay has important role and i agree wild moves in one direction is required!
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#23
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GUNAVADHI,
I follow these strategies , but when you want to prolong the positions for 10-15 days its not advisable to buy the options but to sell thse options. You are going to get the advantage of time decay to add to yr profit. Buying options in these strategy may be done only for a period of 3-4 days , not more. your advise pl SVK11 |
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#24
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Quote:
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#25
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Hi All,
I have found one problem in this model 4017 - - 103+195 - - 66+138 - - 104+205 When call premium price is less compare to put premium price in this situation if market start going up then put call price get reduce by 2 points where call price get increase only for 1 point. End of day you only get loss if market close on high Avoiding provided situation what I have done:- I have started taking 2 contracts of call and on put for balancing the premium price in this situation I get relief and equal profit when price will get close on high Disadvantage doing this:- 1)We need to pay more brokerage 2)We need more money for investment Please let me know your comments |
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#26
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I took a strangle yesterday when nifty was at 3800.
3800 C ( 122 ) , 3800 P ( 145 ) - Total cost : 267 Sqaured of today a little while ago ( not at same time ) I squared off 3800 p (102) ,when nifty crossed 3900 around 12:15 Pm and 3800c ( 205 ) when nifty struggling at 3940 . Total : 307 . profit around 35 points after brokerage . More than 10% on capital Naresh |
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#27
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Bought Strangle 3900
3900C - 142 3900P - 130 Total Cost - 272 Naresh |
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#28
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A strangle is made up of a call and a put with different strike prices (when all other factors remain the same). By the looks of it, you seem to be going in for a straddle. Correct me if I am wrong.
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#29
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Quote:
Thanks for correcting me Naresh |
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#30
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Hi Nareshch
I am also buying given strategies and its good, giving good profit also. I read more books related this and search on goggle too. These strategies are very commonly use in US many ppl are earning 2 to 13 % monthly income on total investment. I just have one point that if there is more then 50 % difference in premium then there is more chance that this strategy doesn’t work. Check the numerical example:- Like Nifty 4000 --------------------------------------------------------------- Call is 80 * 50 = 4000 Put is 200 * 50 = 10000 Total is = 14000 End of day Call is 100 * 50 = 5000 Put is 170 * 50 = 8500 Total is = 13500 ------------------------------------------------------------------ In this case if we buy to calls which will cost near 80 * 100 = 8000 and there will be more chances of getting profit using these strategies. Please let me know if I wrong or you are thinking to use exercise option? |
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