less risk options strategy .

rajsumi121

Well-Known Member
#1
Trade 7 days before expiry .

sell atm call + put of next series . ... and buy 300 points otm call + put current series ...and exit on exiry dat after 3 pm from atm call put selling trade .

as per my calculation = premium reduce from atm call + put in 7 days = 50-60 points .

premium give in otm call+put buying = 10-12 points .

brokrage from 6 trade = 300 rs means = 6 points .

balnce points = 50- 18 = 32 = 1,600 rs .

not bad with investment of 40-45 k in only 7 days ...almost 3- 3.5 % .


wt you think guysssssssssss .:thumb:
 

trader.trends

Well-Known Member
#2
Trade 7 days before expiry .

sell atm call + put of next series . ... and buy 300 points otm call + put current series ...and exit on exiry dat after 3 pm from atm call put selling trade .

as per my calculation = premium reduce from atm call + put in 7 days = 50-60 points .

premium give in otm call+put buying = 10-12 points .

brokrage from 6 trade = 300 rs means = 6 points .

balnce points = 50- 18 = 32 = 1,600 rs .

not bad with investment of 40-45 k in only 7 days ...almost 3- 3.5 % .
wt you think guysssssssssss .:thumb:
Rajsumi
The flaw in this IMO is your assumption that ATM calls have a time value of 50-60 pts. The next month series don't deteriorate that fast. Here let me give you the actual figures.

On 17 Feb 7-8 days before the expiry of Feb25 option expiry:
Spot at 4916.

Sell 4900CE of March @ 150
Sell 4900PE of March @ 152
Total on March Shorts: 302/-

Buy 5200PE of Feb: 297
Buy 4600CE of Feb: 304

Total value of longs: 601/-

On 25 Feb spot settle at 4859
4900CE of March value: 133
4900PE of March value: 164
Total value of March: 297/-

Gain in March series: 7/-

Feb series
5200PE: 341
4600CE: 259
Total: 600/-

Loss in Feb series: 1/-

Net gain: 6 pts without taking into account the cost of transaction.

Let me know if my understanding of your idea is right and my calculations are correct.
 

AW10

Well-Known Member
#3
TT, I think what he meant was to buy OTM CALL.. i.e. 5200 call and 4600 put..
You have considered deep ITM calls/puts..and paide about 300 rs for each of them.

This is nothing buy short calender spread. Idea is to eat the time decay in far month short Straddle and protect by near month long strangle.

And I think, FEB was wrong choice cause due to budget uncertainty, the far series did not loose its Time value till Monday.
will be good idea to backtest for other months.

I use this Short Calender spread around last week and hence using at first glance this strategy seems ok to me.

Happy Trading
 

rajsumi121

Well-Known Member
#6
danpick my dear friend ... why not you showing data of nifty options for example ...why s&p 500 and othersssss ..... and please tell me wt is big risk in this strategy ....... ?????
 

AW10

Well-Known Member
#7
Rajsumi,
Dan does not trade Indian market. He is based abroad and trades US mkt hence he has given example here. He is one of the active memeber in TJ, when it comes to Options and has very good experience with him.

Moreover, the tool that he uses for his analysis does not connect to NSE options data feed. You can use tool like options oracle for our market and perform the analysis, if you want..

HappyTrading
 

prasham

Active Member
#8
Moreover, the tool that he uses for his analysis does not connect to NSE options data feed. You can use tool like options oracle for our market and perform the analysis, if you want..

HappyTrading

Where can I download the Option Oracle? I read somewhere that its a free tool. Is that right?

EDIT: After writing this post, I tried Google and landed at www.samoasky.com where OptionsOracle tool can be downloaded.
 

Mangafreakz

Well-Known Member
#10
Use OptionsOracle for analysing the different strategies mentioned by AW10, Dan, Linkon and others before trading them with real money , it will work for both Nifty and stock options.
 

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