IRON CONDOR-option trading strategy

L

lokanathpai

Active Member
#21
#21
Position on 31-03-17 for reverasal/squaring off
9500 call buy 75 15.60 -1170.00
9600 call sell 75 6.20 465.00
8800 put buy 75 21.40 -1605.00
8700 put sell 75 13.95 1046.25
-1263.75

profit (1470.00-1263.75)= 206.25
 
Subhadip

Subhadip

Well-Known Member
#22
#22
lokanathpai said:
After switching my latest positional value

24.03.17 march series-9200-8800
8700 put sell 75 1.50 112.50
8800 put buy 75 2.45 -183.75
9200 call buy 75 15.50 -1162.50
9300 call sell 75 2.70 202.50
-1031.25

old positional income 2460.00
loss onreversal of this position -4308.75
new positional income 2486.25
present positional value -1031.25
net result -393.75

apr series max oi 9500-9000
current index 9108.00
for keeping me away by 300 points to the current level deduct 300 from current level
so my new range is 9500-8800
hence my new position is:
9500 call sell 75 16.50 1237.50
9600 call buy 75 8.10 -607.50
8800 put sell 75 30.15 2261.25
8700 put buy 75 18.95 -1421.25
1470.00


max profit 1470.00
max loss ((100*75)-1470) 6030.00
retained profit of earlier trade(1755-394) 1361.00


iron condor is directionless strategy
it makes profit when index remains in the range
now volatility is also reduced hence option sellers make less profit

i invite suggestions from learned veterans who are experts in handling option selling iron condor
Click to expand...
Wait for VIX to go high...
 
L

lokanathpai

Active Member
#24
#24
Latest position
For freversal
07-04-2017
9500 CALL BUY 75 6.10 -457.50
9600 CALL SELL 75 2.00 150.00
8800 PUT BUY 75 10.20 -765.00
8700 PUT SELL 75 6.25 468.75
-603.75

PROFIT 866.25
 
L

lokanathpai

Active Member
#27
#27
As max open interest for put continued at 9000 strike On Monday replacement of 8800/8700 with 9000/8900 put is done
8800 75 5.75 -431.25
8700 75 3.90 292.5

9000 75 22.55 1691.25
8900 75 10.75 -806.25
Additional income of Rs 746.25 derived

Hence total income Rs 1470.00 + Rs 746.25= 2216.25
 
L

lokanathpai

Active Member
#29
#29
LATEST POSITION
21-04-2017
9500 CALL BUY 75 0.45 -33.75
9600 CALL SELL 75 0.40 30.00
9000 PUT BUY 75 13.15 -986.25
8900 PUT SELL 75 5.05 378.75 0
-611.25

PROFIT 1605.00

IRON CONDOR TRADE MONTHS 3
PROFITING MONTHS 2
LOSS MONTHS 1
INITIAL INVESTMENT 50000
CUMULATIVE PROFIT UPTO APR 17 2966
PERCENTAGE OF PROFIT TO INVESTMENT 5.93%

Stratgy:
MAX OPEN INTEREST IN A MONTHLY SERIES ON BOTH CALL/PUT SIDE INDICATES RANGE FOR NIFTY IN THAT MONTH AS PER MARKET EXPECTATION
SEE EACH OF THESE TWO ENDS ARE 300 POINTS AWAY FROM PRESENT NIFTY LEVEL
THERE IS NO CALCULATION FOR ARRIVING 300 POINTS AWAY.
IT IS ONLY AN ASSUMPTION
IF AN END IS WITHIN 300 POINTS AWAY, PUSH THAT SIDE 300 POINTS AWAY
SHORT THESE TWO ENDS
TO HEDGE, BUY BOTH CALL AND PUT STILL 100 POINTS AWAY STRIKE
THAT CREATES AN IRON CONDOR-CREDIT SPREAD
CREDIT SPREAD GIVES PREMIUM CREDIT =INCOME
TARGET RETAINING ATLEAST 70% OF THIS INCOME AND SQUAREOFF IRON CONDOR POSITION
 
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L

lokanathpai

Active Member
#30
#30
Max open int for May 2017 series is 9400/9000
As PUT is within 300 points of present level, range will be taken as 9400/8800

As India VIX is low, premium on optiona are low.
Hence, I will create new position for MAY next week or first week of MAY on a down day, when VIX will shootup. How much volatility will increase I dont know. But I will wait for a down day. VIX= VOLATILITY INDEX
 
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