High Profit EOD based option Strategy for Advanced Traders

[vssoma]

Pannalal ji, Please design some strategy for Novice trader also... And most of the people wont have capital more than 30k ...

Anupji,

First thing, I am also a novice. However, I genuinely want to help people.

If you want to deal in options, the minimum capital required is Rs. 1 lakh. Sometime, you need to hedge based on the market movement, then you may require more money. So, it is better to have 1.5 lakh. Anybody, less than this, should not touch options.

You can tell me range where you expect the Nifty to be by 28th Nov 2013 and I shall give you strategy from my software.

There are many members here who are highly knowledgeable. You ask them to design a strategy in option such that it works within 30K.

dear,
check this strategy...it's according to your requirement( more or less within 30K)

as of my knowledge, it is hard to guess where stock will go, but it is more easy to guess where it'll not go. so it's easy to design according to that level.

https://www.facebook.com/media/set/...073741828.470187436357058&type=1&l=ac35cf9ae5

 

[DanPickUp]

dear,
check this strategy...it's according to your requirement( more or less within 30K)

as of my knowledge, it is hard to guess where stock will go, but it is more easy to guess where it'll not go. so it's easy to design according to that level.

https://www.facebook.com/media/set/...073741828.470187436357058&type=1&l=ac35cf9ae5

@Vssoma

Dear friend, you now come up with an other strategy. Why? Even what you post: Back spread has its advantage and disadvantage. So no reason to come up with that strategy in this thread. If you think that this strategy is so stress free, why don't you come up with a new thread about that specific strategy and let it discuss there. I am clear that you in the mean time have your own business and do sell there what ever you can, but coming in here with your business is not what is wanted. So please stay out of this thread with your business and open your own thread.

Take care and all the best with your business. Would appreciate if you would open a thread about it and then let us discuss over there what ever we may can discuss there. DanPickUp

 

[ananths]

dear,
check this strategy...it's according to your requirement( more or less within 30K)

as of my knowledge, it is hard to guess where stock will go, but it is more easy to guess where it'll not go. so it's easy to design according to that level.

https://www.facebook.com/media/set/...073741828.470187436357058&type=1&l=ac35cf9ae5

Dear Swamy,

Nice picture of profit graph...

Just to summarise this spread,

Buy 1 lot 6200PE @ 83
Buy 1 lot 6300CE @ 89
Sell 1 lot 6400CE @ 49

All are today's price.

What this spread does is you are buying call debit spread and 1 Put.

1) Market should be below 6100 to get any profit in this case.
2) If market is between 6100 and 6400..you will lose approximately -112 points
3) If market goes above 6400, you will lose -24 points only
All at expiry.

So your max risk is around 112 points and your profit target is market going below 6100 at expiry. So it shows that you are almost sure that market will expire below 6100. Then why all these circus? just buy a 6200PE and hold till expiry. You will lose maximum 83 points.

My suggestion is instead of doing all these buy a put debit spread like below
long 6200PE @ 83
Short 6100PE @ 54

Maximum risk 30 points and max profit is 70 points. :thumb:

This is the reason I like debit spread. Even if you are not watching market at any point in time you know what you are going to lose and what is the potential to earn.
For new option strategy traders - Dont complicate your life by searching for so many strategies. Just play the simple one's first. Then do all experiments. :thumb:

Profit :- Dont look for strategies which will give max profit..first learn to manage a spread/strategy. If you are looking for max profit then by naked option!

 

[DanPickUp]

@Ananths

What is the above post? What do you want to explain to Swamy? May you do not know, but Swamy has a business in which he wants to sell option education for a price out of any good. The whole course not even gives you more education compare to a bit more than basic. So forget about it.

Showing a nice picture about a back spread is not very difficult to do. Now even praising him for that is ???????

He is not interested in your explanation about your debit spreads and there is no need to tell again and again that you love them. This thread is about pure selling options in a way not presented and talked here in the forum much. So let the thread move on as it is.

 

[ananths]

@Ananths

What is the above post? What do you want to explain to Swamy? May you do not know, but Swamy has a business in which he wants to sell option education for a price out of any good. The whole course not even gives you more education compare to a bit more than basic. So forget about it.

Showing a nice picture about a back spread is not very difficult to do. Now even praising him for that is ???????

He is not interested in your explanation about your debit spreads and there is no need to tell again and again that you love them. This thread is about pure selling options in a way not presented and talked here in the forum much. So let the thread move on as it is.

hmm...got it Dan! :clapping:

I apreciate all these strategies and good for education. Let the thread continue. I wont disturb! :thumb: :rofl:

 

[DanPickUp]

hmm...got it Dan! :clapping:

I apreciate all these strategies and good for education. Let the thread continue. I wont disturb! :thumb: :rofl:

@Ananths

You should know me in the mean time: Nothing personal. and I do support your thread when ever I can. You know that.

Now the strategy of Pannalal is not out of question, as I even some times trade one which is quit similar. Only different: I have two long legs and two short legs in it. If you read my post about the questions from Gmt900, you will get the point.

It is not my duty to post all my strategies here we can trade, even in your market in any way, but this one is not out of question. So that is why I requested to let the thread move on as it is. :thumb:

Take care / DanPickUp

 

[pannalal]

@Pannalal

Well, think about it the following way: As you programed that software, then your knowledge about that is far better then mine. That is why big companies develop there option trading software in teams which include real option traders and real software developer. I think as a team we would be fine. :clapping:

Take care / DanPickUp

I shall be too glad to make team with you. The only thing as of today, the software does not have user interface. Further, I have to incorporate certain things like computing best iv estimates based on past historical data. Incorporating GARCH and Monte Caro Method (to be used only when required). So, just give me one or two months. Then, I shall offer you for evaluation and incorporate whatever suggestions you give.

We shall make it one of the best software that can help novice as well advanced traders dealing in options.

 

[pannalal]

Strategy 1
Transaction to be done on 07 Nov 2013 for Base Index at 6215.15
Buy 6650 PE at Price 372.50
Sell 6250 PE at Price 103.70
Sell 6350 CE at Price 67.95
Net Points Paid: -200.85

Profit if Index is less than and equal to 6300 on 28 Nov 2013 is 199.15:clap:
Loss for Index equal to 6400 on 28 Nov 2013 is -0.85
Loss for Index equal to 6500 on 28 Nov 2013 is -200.85
Loss for Index equal to 6600 on 28 Nov 2013 is -400.85

Strategy 2
Transaction to be done on 07 Nov 2013 for Base Index at 6215.15
Buy 6650 PE at Price 372.50
Sell 6500 PE at Price 260
Sell 6400 CE at Price 49.70
Net Points Paid: -62.80

Profit if Index is less than and equal to 6400 on 28 Nov 2013 is 87.20:clap:
Loss for Index equal to 6500 on 28 Nov 2013 is -12.80
Loss for Index equal to 6600 on 28 Nov 2013 is -212.80
Loss for Index equal to 6700 on 28 Nov 2013 is -362.80

Very Important:
Either do not enter into trade, if enter, be sure to make all the three trades at one go. If you do two trades and miss one trade, then this strategy might result into huge losses. So, this is not for novice but only for Advanced Traders.

Profit and Loss given are indicative. The actual profit / loss depends upon the premium paid and received by you.

Disclaimer: I shall not be responsible if anybody does any trade based on the above guidance. The above strategy is only for advanced traders (and not for novice). I do not share your profit so not ready to share the loss.

 

[pannalal]

No Loss Strategy
Transaction to be done on 07 Nov 2013 for Base Index at 6215.15
Buy 6250 CE at Price 116
Sell 6550 CE at Price 16.65
Buy 6550 PE at Price 281.05
Sell 6200 PE at Price 83.85
Net Points Paid: -296.55

Profit if Index is less than and equal to 6200 on 28 Nov 2013 is 53.45:thumb:
Profit for Index greater than equal to 6250 on 28 Nov 2013 is 3.45:thumb:
Profit varies between 53.45 and 3.45 between 6200 and 6250. For example, at 6225, the profit will be 28.45.

Where is the catch?
Buying 6550 PE at Price 281.05 is challenging task. Rest everything seems achievable. If Nifty remains 6250 and above on 28 Nov 2013, then profit is 3.45 that just covers brokerage and STT.

Very Important:
Either do not enter into trade, if enter, be sure to make all the trades at one go. If you do two trades and miss one trade, then this strategy might result into huge losses. So, this is not for novice but only for Advanced Traders.

Profit and Loss given are indicative. The actual profit / loss depends upon the premium paid and received by you.

Disclaimer: I shall not be responsible if anybody does any trade based on the above guidance. The above strategy is only for advanced traders (and not for novice). I do not share your profit so not ready to share the loss.

 

[pannalal]

Last No Loss Strategy for today
Transaction to be done on 07 Nov 2013 for Base Index at 6215.15
Buy 6650 PE at Price 372.50 - 2 lots
Sell 6600 PE at Price 342.85 - 1 lot
Sell 6700 PE at Price 439.10 - 1 lot
Net Points Received: 36.95

Profit: 36.95 irrespective of the Index on 28 Nov 2013.:clap:

Where is the catch?
All premium prices are of high value, so, there is expected to be large gap between ask and bid. However, if you can really manage the above price, then it is sure shot.

Very Important:
Either do not enter into trade, if enter, be sure to make all the three trades at one go. If you do two trades and miss one trade, then this strategy might result into huge losses. So, this is not for novice but only for Advanced Traders.

Profit and Loss given are indicative. The actual profit / loss depends upon the premium paid and received by you.

Disclaimer: I shall not be responsible if anybody does any trade based on the above guidance. The above strategy is only for advanced traders (and not for novice). I do not share your profit so not ready to share the loss.

I got too bored after giving so many strategies, so this is the last one for today. All the premium prices are based on the last price given by NSE.