How to earn 70% return in investment by trading in Nifty Future and options?

In paper trading, we bought 0n 18.03.2010 as per the article,

1. Buy - NiftyFuture - april - 5258

2. Sell- 5300CE - april - 102

3. Buy- 5200PE - March- 23.

Let us watch upto derivative closing.

Hai,
Rananjay00007, can you use this method still now?

sir
with reference to the above title some time in 2010, I found this strategy interesting. I implemented in this month i.e October 2015, it works. Can some one in the group explain the following phrase in the strategy

"You too can form 3 such strategies with covered call with put long and 1 covered put with call long. This will increase your profit realization by 50% and reduce the loss risk by 80%.

Am unable to understand that....is it iron condor strategy....please clarify with example.

Dan Sir,

I tried this strategy and it works. If nifty is trading below 8 DMA sell NF, Sell Near month Call (ATM), Buy cuttent month put (ATM) and vice versa for nifty trading above 8 DMA. 3-4% return per mont without much risk is expected. Your valuable views please.

Regards,
Alok

I repeat with out the TA details:

Short current month future and at the same time short next month atm call and long current month atm put. Is this correct and if not, kindly correct it.

Dan Sir
Sell NF Sell next month Put buy Current month call if market is in down trend and reverse when uptrend. Use atm options. Do reverse if market in uptrend. Shuffle postions when you are in profits of about 20 to 30 points. This way we can make profits of about 40 to 70 points per month which is around 3 to 7 percent per month with almost zero risk. Even if we keep position till expiry we will not loose much. Even rksv option strategy builder shows never loss till expiry.

Your guidance is needed.

Regards
Alok

1. Is it possible for you to post a screen shoot with the option Greeks for each leg (IV, Delta is a must, and so on if possible) from RKSV, as I do not use this tool?

2. Not clear in dept about this: Shuffle positions when you are in profits of about 20 to 30 points.

- Is it possible for you to explain with a most simple example how and under what general conditions (No need to post every details from any conditions, just a general situation like: Nifty spot ..... Cross of..... and now we switch or do this with the put and call...............)

- And why 20 to 30 points is the number? From where doe's this number come?

I ask this, as we do not talk per phone, instead with written words. And this is far more complicated compare to straight away talking on any phone.

Dear sir
Will post screenshot later as at present using phone.
Shuffle means making our options again atm which will get away from at the money with movement of nifty. 20-30 points means movement of nifty of around 100 points so shuffling is necessary. Can reverse postipn as trend changes.

Hope I am able to answer your queries.

Basic idea is to make position delta neutral. Future has delta 1 atm option have delta approx .5
Sell nf -1
Buy call .5
Sell put .5

Near month option sell because of higher time value. Hope you understand.

Yes, I understand very well. This is why I asked the questions.

No stress, and post any screen shot when ever your time permits and you even want.

I guess you know about: Calendar Spreads and how they visually are seen on the analyzing picture. It is because different option time models must and are involved in it. We also can play them in different ways. In your case the future leg is added to this. So the delta and gamma do change a bit as we have different time frames we play in one strategy with even different derivatives.

So we talk about a: "Synthetic option strategy".