GOOD PROFIT: Hedged nifty positions with straddle...

[linkon7]

Activity Today :
Nifty opens gap up… at 4490, looks like we might see 4500 plus today…
market looks strong… 4520 is stiff resistance…lets see if it breaks…
made a high of 4529…
placed buy trigger at 4530
got triggered…
made a new high of 4569…
sl at 4554 got hit….
retracement not big….
placed buy trigger at 4552
got triggered at 4552.35
selling pressure is getting visible
sl at 4547 got hit
placed sell trigger at 4438
hit
went to as low as 4515…
placed sl at 4530
hit
placed short trigger at 4528
market selling off
hope 4490 poivides support
next support at 4471 yesterdays close
market sold off totally
made a new low of 4410…
placed sl at 4435…. I doubt it'll get hit….
it got hit…
sold again at 4411.3
made a new low of 4387…
bought 4400 call july at 86 as hedge….

 

[linkon7]

Asian markets closed flat while European markets continued to be under pressure. It was a volatile and difficult day of trade for our market that closed weak. Sensex shut shop at 14843, down 219 points and Nifty at 4398, down 70 points from the previous close. CNX Midcap index was down 0.68% and BSE Smallcap index was down 0.35%. The market breadth was negative with advances at 541 against declines of 708 on the NSE. Top Nifty gainers included ONGC, GAIL and DLF while losers were HDFC, Cipla and ABB.

 

[jalan_sid]

hi lincon.. its siddharth here

i have read ur comments and strategy abt 4500 call put to sell, and to eat up 395 points . so we have to sell below 4100 and buy above 4900.
pls reply..

 

[linkon7]

hi lincon.. its siddharth here

i have read ur comments and strategy abt 4500 call put to sell, and to eat up 395 points . so we have to sell below 4100 and buy above 4900.
pls reply..

selling a call and put of the same strike price is called short straddle. Its a neutral strategy. when we expect the market to trade in a range, we employ this method to get a slice of the premium received.

What i do is. add a nifty future to it. This makes the strategy directional. So it'll be hard for us to loose money. Our gain also remains fixed. i.e. 395 points. If you can play the NF well, then you can make at least 150% of the premium received.

 

[linkon7]

@ Amol Kulkarni...
Read this post....

http://www.traderji.com/beginners-guide/31058-ego-emotion-trading.html#post339518

 

[myvineet]

scrip cost present diff profit/loss
4500 CE (Aug) 190.00 152.00 38.00 3,800.00
4500 PE (Aug) 205.00 236.00 (31.00) (3,100.00)
Nifty Futures 4,518.75 4,413.00 105.75 10,575.00
4400 call (july) as hedge 86.00 88.00 2.00 200.00

Total = 11,475.00


The position of the nifty straddle as of end of 22th July2009

Script
4500 CE (Aug) shorted at 190 has a current price of Rs. 152 is at a profit of Rs.3800
4500 PE (Aug) shorted at 205 has a current price of Rs. 236 is at a loss of Rs.-3100
Nifty Futures short Innitiated at the averaged price of 4518.75 has a current price of Rs. 4413 is at a loss of Rs.10575

Total = profit of Rs. 11475


Statistics

Cost of the straddle = 395.00
present price of the straddle = 388.00
Actual value of the straddle = 87.00
profit on straddle = 7.00
Profit on nifty = 105.75
profit on Hedge = 2.00

total profit = 114.75

linkon , i think you have made profit on nifty short ....its a typo i think....

thanx

 

[linkon7]

linkon , i think you have made profit on nifty short ....its a typo i think....

thanx

This excel sheet is getting on my nerves.... I use the function "concatenate" and that causes this errors...

 

[lazytrader]

This excel sheet is getting on my nerves.... I use the function "concatenate" and that causes this errors...

A better way is to use the "&" symbol to concatenate instead of using the functions. Less effort, less time and a smaller formula.

 

[Xaero]

I'm sure you said that you use RMoney for options because of low brokerage. Which one do you use now RKG or RMoney?

Perhaps you can help http://www.traderji.com/brokers-tra...est-broker-intraday-trading-7.html#post339946

I was trying to work out some spreads on my own but somehow when I checkout the prices on Options chain it either ends up increasing risk or reducing proft. I check options oracle. It has so options that I decided to do the option calculation by hand.

This strategy you mentioned here (selling Aug 4400 CE and PE) isn't it the same as selling 4000 PE and 4800CE?

 

[linkon7]

I'm sure you said that you use RMoney for options because of low brokerage. Which one do you use now RKG or RMoney?

Perhaps you can help http://www.traderji.com/brokers-tra...est-broker-intraday-trading-7.html#post339946

I was trying to work out some spreads on my own but somehow when I checkout the prices on Options chain it either ends up increasing risk or reducing proft. I check options oracle. It has so options that I decided to do the option calculation by hand.

This strategy you mentioned here (selling Aug 4400 CE and PE) isn't it the same as selling 4000 PE and 4800CE?

I shifted to shorting 4500 ce and pe august for a total premium of about 400 points. My break even point is 4100 on the lower side and 4900 on the upper side. But if i sell 4000 PE and 4800 PE then i get very little premium. no doubt, I'll have much lesser risk... but very little reward as well....

I used to use Rmoney, now i shifted to r k global...for faster execution...