Directional credit spread

Trend indicates direction of movement of underlying.
It will not indicate how much the underlying moves.
It is also not guaranteed that prevailing trend continues.
When one buys call, he can make money only when underlying surpasses the strike+premium amount, within expiry period.
Again this is not guaranteed.
Premium also does not remain same, but goes on eroding as time lapses.
When one sell a put when trend is up,there is a likelihood of underlying not falling through the strike sold.
If underlying moves up or remain same or moves down a little bit so far it doesn't surpasses the sold strike, there is possibility of profit.
It is also not guaranteed that underlying will not crash. To safeguard ourselves we hedge, buy a lower strike. If underlying falls through the sold strike drastically the hedge will protect us by off-setting our loss. We have to bear the risk equal to amount of difference between sold strike and hedge strike minus premium collected.
As we are selling support(max open into) put, there is a probability of profit more in this type of trade.
It is presumed 80% of times we will win.
So we will earn slow and steadily, month after month.

I am not a professional option trader.
This is only my view point.
It may be wrong.
So take your own decision.
I am drawing some strategy and putting up in trading diary hoping it will be corrected or fine-tuned by experienced persons.

Reversal pos on 26/05/17
9300 buy 150 36.95 -5542.5
9200 sell 150 24.75 3712.5
-1830

retainable profit 697.50 27.6

Reversal pos on 02/06/17
9300 buy 150 20.40 -3060
9200 sell 150 13.55 2032.5
-1027.5
retainable profit 1500.00

Reversal pos on 09/06/17
9300 buy 150 11.75 -1762.50
9200 sell 150 8.00 1200.00
-562.50
retainable profit 1965.00
percentage 77.74%

Reversal pos on 16/06/17
9300 buy 150 9.30 -1395.00
9200 sell 150 5.10 765.00
-630.00
retainable profit 1897.50

closed this position
max open int for put moved from 9300 to 9500
hence opened new position with new strike of 9500 put
i am modifying target profit to 50% henceforth
just to book profit early-and trade often
(see tastytrade.com videos-you can learn lot of things there)

16/06/17
jun9500 put sell 150 35.35 5302.50
jun9400put buy 150 18.55 -2782.50
net income 2520.00

max profit 2520.00
max loss (100*150)-2520 12480.00
retained profit from earlier trade 1897.50
net max loss 10582.50

taget profit 50% 1260.00

23/06/17
JUN9500 PUT BUY 150 16.50 -2475.00
JUN9400PUT SELL 150 6.25 937.50
- -1537.50

Retainable profit Rs 982.50

Closure of pos on 29/06/17
jun9500 put buy 150 14.80 -2220.00
jun9400 put sell 150 1.60 240.00
-1980.00

retained profit 540.00
retained profit from earlier trade 1897.50
total profit 2437.50

Trend up-hence sell put

max open int july 17
put 9400 69.00 --a

hedge 200 points away
put 9200 29.25 ,--b

income: (a-b) 69.00
max loss (200-income) 131.00

on 30/06/17
jul9400 put sell 150 69.00 10350.00
jul9200 put buy 150 29.25 -4387.50
max profit 5962.50
target retain profit(50%) 2981.25

profit from previous trade 2437.50

ON 07/07/17
JUL9400 PUT BUY 150 21.50 -3225.00
JUL9200 PUT SELL 150 7.70 1155.00
-2070.00
RESULT 3892.50
ACHIEVED TARGET PROFIT! BUT MAX PUT STILL 9500
NEXT MEANS AUG EXPIRY IS MORE THAN 45 DAYS AWAY
HENCE I CONTINUE TO HOLD THIS POSITION

POSITI
ON ON 14/07/17

JUL9400 PUT BUY 150 6.05 -907.50
JUL9200 PUT SELL 150 3.95 592.50
-315.00
RESULT 5647.50

I AM SHIFTING MY ENTIRE TRADING ACTIVITY IN IRON CONDOR TO HERE
HENCE THIS PPOSITION WILL REMAIN OPEN TILL MY IRONDOR POSITION REMAINS OPEN