Day Trading Stocks & Futures

HDFC Bank December 2020 1200 PE and 1600 CE gives total about Rs 14.......looking to enter(sell) into this trade. For Nov I did HDFC Bank 1200/1500 strangle sell and was comfortable....Nifty strangle(sell) for Nov was 10000/14000 ,that was also home safely....For Dec looking for 10000/15000.....
What is the margin req for selling 10000/15000 strangle?
 
10000PE is at 12. What is the quote on 15000CE? I dont see 31 Dec quote but let's say it's about 5.

If you sell a strangle now you will make 20 points in a month on an investment of 3L?
 
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Sidz

Well-Known Member
10000PE is at 12. What is the quote on 15000CE? I dont see 31 Dec quote but let's say it's about 5.

If you sell a strangle now you will make 20 points in a month on an investment of 3L?
No. You are making 20 points on an investment of 1.5 Lacs lying idle in your account. Moreover, if nifty doesnt move much and VIX decreases, then you may expect more than 10 points in the next 10 days also.
 

travi

Well-Known Member
10000PE is at 12. What is the quote on 15000CE? I dont see 31 Dec quote but let's say it's about 5.

If you sell a strangle now you will make 20 points in a month on an investment of 3L?
Strangle Margin bulk is on first leg. 2nd leg is very nominal. This is after margin benefit policy.
Varies with strike but i roughly go with 1.7L for pair of ATM CE/PE with Z.

Bcos only one leg can potentially be in loss.
 
Is it 1.3+1.3 or 0.65+0.65
Total 1.3 L ......so 65000+65000 ........actually both margins will have some difference so it could be 55000 +75000......

It is not a very aggressive trading..I am using to earn some returns on my funds lying idle...so even 3-5 % in a month is good return on my idle funds.....dont want any aggressive trading.

If one keeps 1500-2000 points away strike price, one gets Rs 36 combined premium.
 
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