Great Options Strategy for Zerodha and similar only

[GuluGulu]

Daer friend,
My wife is known case of SLE an auto immune desease.
kindly let me know the details of the doctor (e-mail address or Ph)
Manojkumar

Hello Manoj,

Beside trading and other job, it is my most important and 1st duty to help people who are suffering from any disease.

While combating with my daughter's disease, I studied and came across another world of treatment.

I found, all the disease is a process as health is also a process. And all disease manifests in your mind first. Its your Consciousness.

I found the connection and went up to the 'Law of Attraction' - and the power of Intention - 'Mind over Matter'

Anyway, I also learned it last year that you must help other people from your heart as far as you can. In this way Lord will help you definitely.

The Doctor is Dr. Rajan Sankaran. He lives in Juhu area in Mumbai. Just Google his name. He is probably the best and No. 1 homeopathic doctor in the world after Samuel Hahnemann. Don't take my word - just use Google and you will find.

Also, this Lupus is definitely curable - there is some miraculous things. Come out of your traditional belief and Google the following at least in order of preference:

Royal Raymond Rife - Plasma type Rife machine is preferred.
Bob Beck Protocol
Urine Therapy
and Emotional Freedom Technique

Google all of the above - study all of them - and you will find answers to most of the maladies we have now.

Wish your wife a very speedy cure -

Above all, Always have faith on Lord even in your adverse condition.

May God Bless all of us.

Warm Regards,
GG

 

[GuluGulu]

Hi GG,

Nice to know that your daughter has
recovered. I too have a little one, and
I know how frustrating it is even if she
gets a scratch. God bless our loved ones and
keep them away from any harm. You know
there is a cure for every disease, but only
divine help can direct us to the source of the
cure.

I too have recently migrated to ZERODHA. Your
strategy seems to be the best way to utillise
the facilities available with them. Let's work
together towards achieving the profits.

The forum was certainly missing someone of your
knowledge of the market. Welcome back on behalf
of all the members.


With Regards,
MSA

Hello MSA,

In the past, I have lost a lot of money in the market. I don't have any knowledge - just trying to learn now in a very conservative way.

Thank you very much. Anyway, let's try how this strategy or other can be refined.

Warm Regards,
GG

 

[munde_77]

Gulu and others . Let us paper trade and post trades in realtime here so that we can check the success rate of this strategy. It is too early to say this strategy will be successful or unsuccessful. Diff in bid and sell in Executing trades at desired may sometimes vary.

 

[GuluGulu]

A Second Strategy.

Most of we always try to find in which direction market will go we intend the market will go UP and it goes down and vice versa. We take a position when trades go wrong, we try to average putting more money and later we face margin call. This happened with me.

Now I am considering my following personal cases.

Say, I have a Capital of 2 lakh and trade with Zerodha for brokerage thingy.

There are many trading systems available in the internet and forums like TJ etc. Some of them generates BUY-SELL signal, some trend following systems etc. Many master trader here developed brilliant systems and they are available here in TJ for free.

Suppose I choose such a system that runs on Amibroker, MS, Metatrader or any other. It can be a simple EMA crossover system to more complex one. No matter. Just I shall read the thread of those trading systems and choose one which suits me or I think would be good because it is developed by very good trader or whatever the case may be doesnt matter.

What I want that the system is able to give some good real-time clue or signal so that I can catch the trend I shall know at least when I am going to buy or sell.

But here is a big BUT No trading system or method in the world is Holy Grail all we know this market moves as it likes. So even the most good trading system will also fail 20 to 40% and our stop loss will get hit. Anyway, assume the trading system is really a good promising one.

This is the point where I shall initiate this strategy and make my trade more promising.

Consider the following case:

Suppose NF is at 5551 and our system gives a BUY signal. People generally initiate the following trade.

Buy one lot NF @ 5551 and hold according to the system.

Instead, I initiate the following one:

Buy 3 lots just OTM call + 2 lots just OTM puts.

For NF @ 5551,

May OTM Call 5600CE is 70.50/-
May OTM Put 5500PE is 74/-

First Case The Trading system is right and Nifty moves to 5625

Trade 1. Naked NF Buy: Profit is (5625-5551)X50 = 3700/-

Trade 2 Option Strategy Return.
When NF will be @ 5625, as per OptionsOracle, The return is 2697/-

Well, about 1000/- less than the naked NF buy. But good profit.

Second Case What if the Trading system fails and Nifty goes down to 5485?

Trade 1. Naked NF Buy: Loss is (5551-5485)X50 = 3300/-

Trade 2 Option Strategy Return.
When NF will be @ 5485, as per OptionsOracle, The Loss is 725/-

See above, the loss is much reduced than the naked NF Buy. Digestable. At this point you can square off the position with less loss than naked NF buy.

Now consider the following third case. This is the most beautiful part.
As per OptionsOracle, as NF starts moving below 5495, your loss will start reducing. At 5495, this will give the maximum loss 747/-. Just compare this to the naked NF position.
When NF even moves below 5435, this strategy will again become Profitable.

When NF at 5425, Naked NF Buy will give a loss of 6300/- while Options Strategy will give a Profit of 226/-

So, instead of playing with naked NF, combining this strategy with a very good system, we can make very good profit and if the trade hits Stop loss, the loss would be much less. So the loosing trade is much much less loosing.

Buying 1 lot of NF takes a margin around 30,000/-. Just one set of this strategy consisting of 3 call + 2 puts will cost around 18,000/-

With a 2 lakh trading capital, just starting with 1 set of strategy is a good money management even if you are very much protected in a drastically wrong trade as explained above. Your maximum loss is just 747/- with unlimited profit potential.

Similarly, when your system generates SELL signal, just initiate the reverse principle.

Remember to square-off the trade intraday basis with whatever profit or loss, so that market volatility, time decay etc. can not badly affect it if you carry it next day.

Around 10 to 15 good trades may give you another 18,000/- total profit.

Then add another set. And then add another from your next profit. In this way, compound your trade.

And lets we all see what happens.

May God Bless all of us.

GG

 

[munde_77]

Try to post trades in realtimes here which will help all of us here

 

[DanPickUp]

Hi

The strategies you are mentioned are full trading setups in here own ways. There is not much to discuss about it, unless you want to change the entry setups or the follow up setups, which will change the risk curve.

As you want to trade low risk strategies, this are ways to do it and if you like them, you can trade this setups. You not have to change any thing, expect maybe some adjustment to your markets, if it not fixes in any point and you can start tomorrow with implementing them in your market. The adjustment, if ever needed, you only will find out by doing it in reality. End of post !

Good trading

DanPickUp

 

[GuluGulu]

Real Trade: Bought when NF around 5550

5500CE 10 lot @ 121/-
5600PE 8 lot @ 119/-

Total investment around 110,000/-

With a 5:4 Call-Put ratio with bullish outlook in the market. Let's see what happens. Will sqareoff @ 5500 or 5600 and take a new trade. It is my target to gain just 1% net in a day on my investment capital. i.e. around 1100/-. If market remains whole day at around 5550, then this position will loose maximum value due to time decay, but it would be low, as today is 9th may.

 

[sumosanammain]

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[Garry15]

Gulugulu.. better trade would have been to sell those instead of buying..

 

[GuluGulu]

Gulugulu.. better trade would have been to sell those instead of buying..

Selling both Put and Call is an open ended strategy where your profit is limited to the net premium gained, but loss is unlimited in case of market moves wildly in any direction and one option becomes ITM.

Also selling total 18 lots of option will require much much more margin capital than buying.

The position is already @ 400/- profit EVEN MY OUTLLOK WAS BULLISH at NF 5540. Remember - the position has to be squared off intraday basis.

Cheers
GG