15% Guaranteed Returns - Buy both Call & Put options Strategy

In your example, the price of the increasing contract has gone up by 70 and that of the decreasing contract has gone down by 41. What if the price of the increasing contract and the decreasing contract change at the same rate then your net profit will be zero OR if the decreasing contract goes down more than the increase in the increasing contract then there will be loss.

I was just trying to understand the strategy, as I am also interested in mastering the art of options trading. If you have improved upon this strategy in any way or have developed or discovered any new strategies, please do post them here.

Hi,

I have back tested this strategy & it worked perfectly. I have been trying out this strategy for couple of weeks. It�s been giving consistent returns of around 15 to 20%, but am curious to know if any of the members have already tried this.


Strategy:

Investment needed: Rs.10,000
Suitable Trading days: 1st to 20th of every month (Better to avoid last week of expiry)

This strategy will give best returns when you expect Nifty or any stock to move either ways with big move.

Example: Nifty Spot (5700)
Trade: Buy Nifty Call 5800 & Nifty Put 5600.

Say Nifty CE 5800 is 50Rs. & Nifty PE 5600 50Rs. (Just a rough figure)

Buy 2 lots of Put & Call options, so total investment = 50*100+50*100=10,000Rs.

If Nifty breaks resistance and keeps moving higher, Nifty CE 5800 value (Rs.50) will increase.
If Nifty breaks support and keeps moving lower Nifty PE 5600 value (Rs.50) will decrease.

Say if Nifty SPOT is 5500 now, then your investment value will be Nifty CE 5800==Rs.9 & Nifty PE 5600 ==Rs.120

Total value = 9*100+120*100=Rs.12900

Total Profit=Rs.10,000-12,900= Rs.2,900.

Your Returns is 29%.

I tried this with high volatile stocks like DLF & Nifty, it worked fine.

Please do let me know if anyone already tried this strategy?
 
Please help me. I am a new trader with a new account on traderji. I want to make 15% profit every month.

Please help me as I am in a difficult situation since my wife has died of cancer 3.5 years back.

Also, I heard SUPERTREND in Zerodha Kite is an effective way of growing money. Please guide me about supertrend also.

If its not against policies of traderji, can you please share your cell number with me?
 
Please help me. I am a new trader with a new account on traderji. I want to make 15% profit every month.

Please help me as I am in a difficult situation since my wife has died of cancer 3.5 years back.

Also, I heard SUPERTREND in Zerodha Kite is an effective way of growing money. Please guide me about supertrend also.

If its not against policies of traderji, can you please share your cell number with me?
sir

In simple words u want to make 1lakh ka 535000 in 1 years ie 15% compounding
Have you seen anyone making it practically if yes what was his reply when you asked him how he does it?
keeping such high expectation is injurious to mind according to me its not impossible but possibility to be consistent is = chance of lottery.

And as you are in difficult situation the trading psychology may affect you more .. As you are trading to make good the difficult situation a minor streak of 3 /4 days loss will leave you broken. If it happens Burden of {difficult situation + loss + achiving 15% }= stress >which = bad decision = big loss = more bad situation

SOLUTION
Make research on whether share/option trading is the only solution to your difficult situation ?
If yes what efforts are you willing to do to make it a profitable business.
When you read about SUPERTREND in Zerodha Kite which people say is effective way of growing money. What doubt did it create in your mind that you had to ask about it here ?
One of reasons why person making 15% per month(if he exists) will avoid telling you his secret is because if it gets public it wont work as before.
So check yours self if supertrend works .. if it does not find ways to make it work

Best Of Luck for the hard-work