From last two weeks I have been doing this... not a new idea really but here it is....
What I am doing is ... Select one /two Nifty stocks which are likely to go up at least moderately during the week (preferably from top 10 of Nifty). On Mon buy FUT and sell ITM call and then Square up on Thu/Fri.
Last two weeks I had good success with ITC and ONGC. Investment in each case on Zerodha is Rs. 1.25 lacs in such pair. Made a profit of about 4 k in a week in each counter. Huge RoI of 3 % per week. (I was amazed to see the erosion in CA values so early in the month).
Here is a live example from this week. On Mon 09 OCT around 9:50 am bought HDFC Ltd FUT at 1743 and sold 1740 CA at 25. (ITM call sold so as max risk cover although it means limited upside). Today (Tue) this CA has closed at same price but FUT is already in profit of Rs. 5/-. Investment in HDFC is 1.6 lacs so my target is 5 k .... lot size is 500 so profit of Rs 10 expected (already in profit of Rs 5). Hoping to SQ up on Thu.
Before I start jumping in joy, I want to know two things --
1. To boost my confidence I want to know if any trader here is already doing this from one year or so. If yes, then what is the RoI ?
2. How to handle the risk scene (case where underlying goes down sharply in a day).
Thanks in advance
pos_trader
What I am doing is ... Select one /two Nifty stocks which are likely to go up at least moderately during the week (preferably from top 10 of Nifty). On Mon buy FUT and sell ITM call and then Square up on Thu/Fri.
Last two weeks I had good success with ITC and ONGC. Investment in each case on Zerodha is Rs. 1.25 lacs in such pair. Made a profit of about 4 k in a week in each counter. Huge RoI of 3 % per week. (I was amazed to see the erosion in CA values so early in the month).
Here is a live example from this week. On Mon 09 OCT around 9:50 am bought HDFC Ltd FUT at 1743 and sold 1740 CA at 25. (ITM call sold so as max risk cover although it means limited upside). Today (Tue) this CA has closed at same price but FUT is already in profit of Rs. 5/-. Investment in HDFC is 1.6 lacs so my target is 5 k .... lot size is 500 so profit of Rs 10 expected (already in profit of Rs 5). Hoping to SQ up on Thu.
Before I start jumping in joy, I want to know two things --
1. To boost my confidence I want to know if any trader here is already doing this from one year or so. If yes, then what is the RoI ?
2. How to handle the risk scene (case where underlying goes down sharply in a day).
Thanks in advance
pos_trader