Directional credit spread

[lokanathpai]

Positional value as on 06/10/17
OCT9700P BUY 3000 21.90 -65700.00
OCT9600P SELL 3000 14.05 42150.00
-23550.00
RESULT 54600.00

 

[lokanathpai]

Positional value as on 13/10/17
OCT9700P BUY 3000 10.30 -30900.00
OCT9600P SELL 3000 7.45 22350.00
-8550.00
INCOME RETENTION 69600.00

 

[lokanathpai]

Positional value as on 19/10/17
OCT9700P BUY 3000 7.70 -23100.00
OCT9600P SELL 3000 5.00 15000.00
-8100.00
INCOME RETENTION 70050.00

 

[lokanathpai]

ON EXPIRY DATE AS STRIKES I WAS IN POSITION WERE OTM
I LEFT THE STRIKES TO EXPIRE WORTHLESS, HENCE I WAS ABLE TO
POCKET ENTIRE INCOME OF RS. 78150/-
MY CAPITAL IS 2229043
ADD PROFIT 78150
TOTAL 2307193

 

[lokanathpai]

MY NEW CREDIT SPREAD TRADE FOR NOV 2017 SERIES

CAPITAL 2307193
RISK AMOUNT 10% 230719
INVESTIBLE AMOUNT 2076474

AS NIFTY DID NOT BREACH 9700 UPTREND IS MAINTAINED

MAX OPEN INT FOR NOV SERIES FOR PUT IS FOR STRIKE 10000
PUT 10000 45.70 A
HEDGE 9900 32.80 B
INCOMEA-B) 12.90
MAX LOSS (100-INCOME) 87.10
TRADEABLE POSITIONS LOTS(RISK AMT/MAX LOSS) 35

TRADE ON 26/10/17
NOV10000PUT SELL 2625 45.70 119962.50
NOV9900PUT BUY 2625 32.80 -86100.00
MAX PROFIT 33862.50

 

[sahen]

Sirs,

ROI of 23.07 lacs is 0.34 lacs in one month => approx 18% pa.

Is it worth taking risk for this earning ROI?

 

[lokanathpai]

Sirs,

ROI of 23.07 lacs is 0.34 lacs in one month => approx 18% pa.

Is it worth taking risk for this earning ROI?

In August my initial capital was 1870175.00. Now at the end of October my capital is Rs.2307193/- , hence my profit in 3 months is Rs 4,37,018/- after adding profit and deducting loss. That is approximately 23% for 3 months and 92% per year. I anticipate around 25 - 30% profit per year, which will be considerably more than what I get in Bank deposit. 18% also more than 7% interest what I get in Bank.

 

[lokanathpai]

positional value on 06/11/17
NOV10000PUT BUY 2625 23.45 -61556.25
NOV9900PUT SELL 2625 17.20 45150.00
-16406.25
PROFIT RETENTION 17456.25

 

[lokanathpai]

positional value on 10/11/17
NOV10000PUT BUY 2625 26.00 -68250.00
NOV9900PUT SELL 2625 17.45 45806.25
-22443.75
PROFIT RETENTION 11418.75

MAX OPEN INT FOR PUT IS NOW FOR 10200 STRIKE
HENCE I REPLACED SPREAD TO 10200/10100
NOV10200 PUT SELL 2625 58.05 152381.25
NOV10100 PUT BUY 2625 37.20 -97650.00
54731.25
COST OF REPLACEMENT -22443.75
ADDL INCOME 32287.50

 

[lokanathpai]

INITIAL INCOME 33862.50
ADDITIONAL INCOME 32287.50
TOTAL INCOME 66150.00


positional value on 17/11/17
NOV10200PUT BUY 2625 46.40 -121800.00
NOV10100PUT SELL 2625 24.95 65493.75
-56306.25
PROFIT RETENTION 9843.75
-56306.25
PROFIT RETENTION 9843.75