GOOD PROFIT: Hedged nifty positions with straddle...

[heeemz]

Status as of 29/07

Nifty Options
Sold 4500 PE at 185, Current value stands at 167
Sold 4500 PE at 202, Current value stands at 189
===================================
Current Status P/L (Not Booked) = +3100 (Rs.)

Nifty Future
Reversed positions around 7 times due to see saw around 4500 levels and finally back to holding 2 lots, Current value stands at 4512. I will reverse the position if it trades below 4500; else I will continue to hold it. Net P/L booked so far due to reversal = - 5200 (Rs.), Includes brokerage and taxes...

Status as of 30/07

Nifty Options
Sold 4500 PE at 185, Current value stands at 141
Sold 4500 CE at 202, Current value stands at 214
===================================
Current Status P/L (Not Booked) = +3200* (Rs.)

Nifty Future
Reversed positions around 5 times due to see saw around 4500 levels and finally back to holding 2 lots, Current value stands at 4572. I will reverse the position if it trades below 4500; else I will continue to hold it. Net P/L booked so far due to reversal = - 8700 (Rs.), Includes brokerage and taxes...

*Brokerage is not counted towards Options trades, it will be counted while I close the position.

 

[heeemz]

Status as of 31/07

Nifty Options
Sold 4500 PE at 185, Current value stands at 109
Sold 4500 CE at 202, Current value stands at 262
===================================
Current Status P/L (Not Booked) = +1600* (Rs.)

Nifty Future
Reversed positions around 5 times due to see saw around 4500 levels and finally back to holding 2 lots, Current value stands at 4636. I will reverse the position if it trades below 4500; else I will continue to hold it. Net P/L booked so far due to reversal = - 8700 (Rs.), Includes brokerage and taxes...

*Brokerage is not counted towards Options trades, it will be counted while I close the position.

 

[linkon7]

Status as of 31/07

Nifty Options
Sold 4500 PE at 185, Current value stands at 109
Sold 4500 CE at 202, Current value stands at 262
===================================
Current Status P/L (Not Booked) = +1600* (Rs.)

Nifty Future
Reversed positions around 5 times due to see saw around 4500 levels and finally back to holding 2 lots, Current value stands at 4572. I will reverse the position if it trades below 4500; else I will continue to hold it. Net P/L booked so far due to reversal = - 8700 (Rs.), Includes brokerage and taxes...

*Brokerage is not counted towards Options trades, it will be counted while I close the position.

Now look at it this way, say, you are holding a long at 4504 and u held on till it reached 4580 and then it started to reverse. why are you riding NF back to 4500 and in the process giving up the gains. Why not sell if at say 4575 and then place a buy order at 4573 (assuming 2 Rs as brokerage) and a sell trigger at 4502.
Nifty comes down to say 4530 and then starts shooting up again, you buy it here and ride it up again. that's how you get to milk NF for points and at the same time hedge the positions u carry over for the next day.

options wont decay as fast as NF moves.... so make money with NF and use the options to hedge NF positions....

 

[MurAtt]

Update please Heemz.

 

[lazytrader]

4500 straddle was going for 300 today. was wondering what strategy you guys adopted for this month?

 

[AW10]

LT, I am short on 4500 straddle @340 from last 3 days. That time VIX was around 38.. (one of my favourite strategy)
Rather then going ahead with ATM straddle, I went for 4500 strike which gave enough room on upside (till 4850) at the same time, the peak is aligned at nice support area.

Today VIX has gone up (40+ today) and hence straddle's are costly. otherwise, the straddle shd have been around 270 or so (roughly).

At 300, it is still attractive. for remaining 14 days, your time premium per day comes to approximately 22 Rs per day (300/14).

Generally, it is difficult to get max return on short straddle (for that to happen mkt has to expire at your strike price). That means straddle always expires with some residual value. Hence we got to have target premium to exit (either profit or loss) by covering the shorts.

Happy Trading

 

[lazytrader]

Do you use the India VIX for timing?

Many say it is un reliable since it uses 50pt stikes instead of the more liquid xx00. Besides options market in India is yet to pick up. I was thinking of using the CBOE VIX because for the most part India markets follow global cues.

 

[praveen taneja]

Do you use the India VIX for timing?

Many say it is un reliable since it uses 50pt stikes instead of the more liquid xx00. Besides options market in India is yet to pick up. I was thinking of using the CBOE VIX because for the most part India markets follow global cues.

I think he is talking about Volatality Index
But I can be wrong TOO:lol:

 

[NiftyFantasy]

i think he is talking about volatality index
but i can be wrong too

?????? :lol:

 

[heeemz]

Now look at it this way, say, you are holding a long at 4504 and u held on till it reached 4580 and then it started to reverse. why are you riding NF back to 4500 and in the process giving up the gains. Why not sell if at say 4575 and then place a buy order at 4573 (assuming 2 Rs as brokerage) and a sell trigger at 4502.
Nifty comes down to say 4530 and then starts shooting up again, you buy it here and ride it up again. that's how you get to milk NF for points and at the same time hedge the positions u carry over for the next day.

options wont decay as fast as NF moves.... so make money with NF and use the options to hedge NF positions....

Linkon: Thanks for valuable advice. I have tried following your guidance accordingly, have got somethings to learn on this though. However, I was unable to make any posts during last week as I was tied up with some critical issues to address. I have noted some updates on in my notepad... shall post it soon.