How to invest 40 lakhs in equity, FnO, commodities etc. Part 2

[SexyTrader]

ST,

Just a quick question.Why dont you start writing 6100 Call as well.Its trading at 15.30 and that premium can easily be taken away if you think market will not cross 6000 at all in Dec series.Any reason for not writing 6100 Call?

As per my NEWEST STRATEGY applied since 6th Dec 2012....I started with writing 6000 CE at 71/-
And at that time did not write the 6100 CE coz was pretty happy with writing 6000 CE as the 1st Trade of my NEWEST STRATEGY

But now since 1st trade doubling has already happened with collected premium, tomorrow I shall write 6100 CE when I get it as high as possible :thumb:

 

[a1b1trader]

Hi ST

You said you started with writing 6000 CE at 71/- with a capital of 1 lakh.
But how many lots you have written

Sorry, sorry (I know you will say I can not disclose the number of lots, as it was advised by a senior member, never ever disclose the no. of lots)

OK, OK.
You invested 1 lakh, in this amount you can not short even 4 lots of nifty 6000 call option (as you have to pay margin money to short)
For calculation sake, let us assume you shorted 4 lots in this amount of 1 lakh that mean 200 call options @ 71 per option.
That means you can earn a maximum of 14200 (exclusive of brokerage and other taxes) only IF the option expires OTM
So how can you double your 1 lakh in this trade.

Am I missing something.

 

[SexyTrader]

Hi ST

You said you started with writing 6000 CE at 71/- with a capital of 1 lakh.
But how many lots you have written

Sorry, sorry (I know you will say I can not disclose the number of lots, as it was advised by a senior member, never ever disclose the no. of lots)

OK, OK.
You invested 1 lakh, in this amount you can not short even 4 lots of nifty 6000 call option (as you have to pay margin money to short)
For calculation sake, let us assume you shorted 4 lots in this amount of 1 lakh that mean 200 call options @ 71 per option.
That means you can earn a maximum of 14200 (exclusive of brokerage and other taxes) only IF the option expires OTM
So how can you double your 1 lakh in this trade.

Am I missing something.

I can understand your confusion :thumb:

In the 6000 CE I have written 29 lots at 71/- and collected premium of 102950.

According to my point-of-view the margin I paid in this trade is just margin money so to me that's like security paid in a way largely unused actively, so not counting that as my RISK-CAPITAL

Since I plan to keep the premium I collected and Brokerage cost me only 7/- per lot.... brokerage and other taxes are peanuts in this trade, so I on a personal level take this to be DOUBLING trade of sorts coz the premium collected is multiple times doubling of my expenses

That's my way of looking at it, hence the term DOUBLING :thumb:

 

[prabhsingh]

ST,

After today's positive start have you squared off your position or still going to hold till expiry?Are you adding more lots of 6000 as that would have become much cheaper by now.

 

[SexyTrader]

ST,

After today's positive start have you squared off your position or still going to hold till expiry?Are you adding more lots of 6000 as that would have become much cheaper by now.

Not adding anymore to 6000 CE coz 29 lots are good enough :thumb:

But I started writing 38 lots of 6100 CE today at 26/- coz was waiting for it to go high....

I love collecting these premiums

 

[SexyTrader]

Will hold these two Naked Call Writing positions till Dec-expiry....as long as it does not breach the strike price :thumb:

Though my SL for writing 6000 CE is 101/- and SL for writing 6100 CE is 56/-.

 

[SexyTrader]

Punj LLoyd(Fut) looks like a good BUY at this level or lower ! :thumb:

I feel it may go to 75 from this current level.

 

[SexyTrader]

Today....bought PunjLloyd(Fut) at 60.75/- and will hold it until it reaches my profit-booking price of 75/- ....MAXIMUM on margin :thumb:

And will continue to hold the two Naked Call Writing positions till Dec-expiry....as long as it does not breach the strike price

 

[prabhsingh]

Today....bought PunjLloyd(Fut) at 60.75/- and will hold it until it reaches my profit-booking price of 75/- ....MAXIMUM on margin :thumb:

And will continue to hold the two Naked Call Writing positions till Dec-expiry....as long as it does not breach the strike price

Are you expecting PunjLlold to reach 75 in Dec series itself?

 

[SexyTrader]

Are you expecting PunjLlold to reach 75 in Dec series itself?

It may or may not

But if it does, I will profit-book at 75/-.....but if it does not, I will roll-over :thumb: