3 Option Strategies Tested Here

[nareshch]

Closed 3900 P @ 94 . 3900C is a hold with SL 218 .

Naresh

 

[nareshch]

Closed 3900 P @ 94 . 3900C is a hold with SL 218 .

Naresh

Sqaured 3900c @ 260 . Bought 4100 Straddle .

Naresh

 

[nareshch]

Hi Nareshch

I am also buying given strategies and its good, giving good profit also. I read more books related this and search on goggle too.

These strategies are very commonly use in US many ppl are earning 2 to 13 % monthly income on total investment.

I just have one point that if there is more then 50 % difference in premium then there is more chance that this strategy doesn’t work.

Check the numerical example:-

Like Nifty 4000
---------------------------------------------------------------
Call is 80 * 50 = 4000
Put is 200 * 50 = 10000
Total is = 14000


End of day
Call is 100 * 50 = 5000
Put is 170 * 50 = 8500
Total is = 13500
------------------------------------------------------------------

In this case if we buy to calls which will cost near 80 * 100 = 8000 and there will be more chances of getting profit using these strategies.

Please let me know if I wrong or you are thinking to use exercise option?

I am working with Very near strike prices of Nifty . I bought 3800 Straddle when nifty hovering around 3800 , 3900 Straddle @3930 levels and today I took 4100 .

1) I am not cheking the other strategies now , as it requires a little bit calculation ( GREEK !!!!!!!!) .When ever we are taking deep in the money calls / puts , we are not only shelling out more premium but have to work out more on the ratio of Calls/ puts. I will study about them over this weekned and lets c , if i get an idea

2) I am taking the profits out of the straddles if they are in profit andtaking the nearest strangle. This way , I am loosing some brokerage , But keeping my profits intact .

3) We cant excercise Nifty Options .Either we have to square off or Wait for Expiry . Due to the high volatility ,Premium prices are already too high .I dont wait for Expiry as premium erodes with time . Just take the profit out and wait for next trade.

Naresh

 

[nareshch]

Sqaured 3900c @ 260 . Bought 4100 Straddle .

Naresh

Squared 4100 straddle ( 181+130) = 311 . Profit =35 points

Put/Call at 4150 has very less volumes . Bought 4200C ( 120 ) and 4100 P( 118)

Naresh

 

[awachat]

Hi Nareshch,

I have seen very less volume normally in 50 ranges. Thats why I always buy 4000,4100 or 4200 contract.

Still I dont know why **50, contract has less volume. I am attaching my trading details as attachment.

I have seen ICICI is charging big brokerage I am loosing my 25 % of profit in brokerage. Do you know any other broker who charge less brokerage?

Yesterdays profit was 3739.50 Rs. On 1,41,782.5 RS investment.

 

[kvram]

awachat sir less brokerage is only R MONEY please do enquire about service in your near branch ,

 

[nareshch]

Hi Nareshch,

I have seen very less volume normally in 50 ranges. Thats why I always buy 4000,4100 or 4200 contract.

Still I dont know why **50, contract has less volume. I am attaching my trading details as attachment.

I have seen ICICI is charging big brokerage I am loosing my 25 % of profit in brokerage. Do you know any other broker who charge less brokerage?

Yesterdays profit was 3739.50 Rs. On 1,41,782.5 RS investment.

Per unit brokerage is around Rs2/- for you .
Does this include trasaction charges , Stampduty and STT ?
Isthis brokerage applies only for Intra or you can hold the postion with same brokerage ?

If it is all inclusive , i dont think its on higher side

I am using Rkglobal from some time .Brokergae is Rs9/- per lot . After adding all charges per unit brokerage is around 1rs. Frankly speaking , i didnt calculate precisely but its in that range.

Advantages :

Odin plat form for realtime quotes and fast orders . I think any platform in world is faster than icicidirect.

Disadvantages :
Odin used to disconnect or Hung couple of times .They upgrade the software and i think the issue is rectified .
Helpdesk is not too polite as ICICIdirect.

Naresh

 

[narayanrk2003]

Nice thread. Keep going.

For the last three months I have been following strangle strategy on Nifty and RIL and made some decent money.

Today I squared off of 5 lots of RIL 2010 put @ 24 and RIL 2190 call @70.
Net profit is, 16750 for 5 lots.

Happy strangle trading.

 

[narayanrk2003]

Today bought 10 lots of NIFTY 4300 call @80 and 4100 put @85.

LTP (as per ICICI direct),
4300 call @111
4100 put @47.

Let us see how it goes tomorrow. Keeping fingers crossed.

Happy strangle trading,
Narayana Rao.

 

[nareshch]

Today bought 10 lots of NIFTY 4300 call @80 and 4100 put @85.

LTP (as per ICICI direct),
4300 call @111
4100 put @47.

Let us see how it goes tomorrow. Keeping fingers crossed.

Happy strangle trading,
Narayana Rao.

4100P @ 47??????? Its wrong . LTP was 77 .

Naresh