Collar trade

[aloksavita]

Sell future sell itm put and buy same strike call.
Strategy builders show always profit. Also when you are in approx 1 percent profit at any time you can close the trade.
You can do it with weekly basis.

I am unable to add screenshots due to larger size.

 

[aloksavita]

 

[Praveen Kumar]

Were the trades done at the same time. An arbitrage of 2884 is pretty good, But its hard to find. A detailed explanation of the above strategy is available in below link.
https://zerodha.com/varsity/chapter/synthetic-long-arbitrage/

 

[aloksavita]

Were the trades done at the same time. An arbitrage of 2884 is pretty good, But its hard to find. A detailed explanation of the above strategy is available in below link.
https://zerodha.com/varsity/chapter/synthetic-long-arbitrage/

Yes all trade at same time.

 

[Praveen Kumar]

The arbitrage still exist at 11000 for 3198. Can some gurus verify that if are we assuming something wrong?

 

[kingkrunal]

the issue here will be with the premium on the future price.. all the calculators shows profit considering the underlying..
try paper run for few weeks and then see

 

[aloksavita]

future is on sell side so premium will be on our side.

 

[kingkrunal]

future is on sell side so premium will be on our side.

- all the tools assume that on expiry the future price will match the spot price ..
- so when u want to close the trade the premium is the reason it shows in profit.. like today it is 40 pts.. from spot.
. if on 14 march - whatever price you can to close the future -- premium will still be there and you cannot sell at the spot price..

if you find this trade on monthly options then it is worth.. but it is all eaten up by algo traders..

 

[Praveen Kumar]

Today the nifty premium ranged from 11.75 to 38.35. I hold a live arbitrage trade aiming at 42.65 points profit for 14th expiry. I am planning to close the trade on expiry date when nifty has around 15 points premium with at least a profit between 20 to 25 points.

 

[kingkrunal]

Today the nifty premium ranged from 11.75 to 38.35. I hold a live arbitrage trade aiming at 42.65 points profit for 14th expiry. I am planning to close the trade on expiry date when nifty has around 15 points premium with at least a profit between 20 to 25 points.

please post the trades -is it the 11k one ? and what if the premium does not drop at all and increase from the point when you have opened the trade ?