IRON CONDOR-option trading strategy

[lokanathpai]

My new trade in May18 series

 

[lokanathpai]

 

[lokanathpai]

 

[lokanathpai]

 

[lokanathpai]

 

[lokanathpai]

 

[govindheg]

View attachment 25473

How your balance sheet looks like as on date?
Iron condor is my favorite. But I can only trade this on MIS basis.

 

[lokanathpai]

Not good! I like directional credit spread. I do only NRML as I have very little time. Just set it and forget it basis.

 

[lokanathpai]

This is BANK NIFTY WEEKLY OPTION STRATEGY
It is just trade idea. I am not yet trading it. I have not even tested it.
I request you to take trouble to go through it
and inform me whether this is feasible.
I am not getting clues for CONS. I am not intelligent enough to decipher it.
Please help me.

The strategy goes as under:
Strategy will be initiated on Friday or Monday

Sell both call and put – ATM - current week

Buy next month - monthly option at ATM



As this is weekly option- option will expire on thursday

As trading is done at ATM adjustments are mostly required

Call side:

• Squareup sold call, if underlying(bank nifty) breaches strike price + premium received on call
• Squareup bought call, if premium exceeds initial premium paid on bought call+previous day’s sold call premium

Put side:

Similarly

• Squareup sold put ,if underlying(bank nifty) breaches strike price - premium received on put
• Squareup bought put, if premium exceeds initial premium paid on bought put+previous day’s sold put premium

On expiry day square up outstanding position by 03:15 pm

 

[lokanathpai]

I found this strategy has a name IRON BUTTERFLY. Using vertical spreads. They say strategy will make money, if closing is ATM strike. So my strategy should go change.

I found there is no need to squareup sold option. PUT, when Banknifty is going down and CALL when Banknifty is going up. Calendar spread will take care the directional risk. I have to mind time value of bought options. Sold options anyway will tend to zero, if market remains stagnat.