Low Risk Low Returns- Target 50 NF per month per NF Lot

[jamit_05]

Ok,

Atleast Last 2 year backtesting results will give better understanding to implement this strategy.

Last 5 year selling call and put has given average 68% return p.a., without any risk. Just check ! ! ! ! !

Only constraint, Margin Money, otherwise, safe strategy is selling the options is always healthy.

Want a way to control risk, pref 100%. Max Risk Max Return does not feel right.

 

[Smart_trade]

Ok,

Last 5 year selling call and put has given average 68% return p.a., without any risk. Just check ! ! ! ! !

Only constraint, Margin Money, otherwise, safe strategy is selling the options is always healthy.

Hi Rish,

Could you please elaborate on the bold portion ? Suppose margin money is no constraint how do you control risk in case of large swings ? Any stoploss you keep ? OTM or ATM ? Please post your assumptions in backtests...any crises stoploss ? last 5 years must have thrown all such possibilities.....please post your views.

ST

 

[Rish]

Hi Rish,

Could you please elaborate on the bold portion ? Suppose margin money is no constraint how do you control risk in case of large swings ? Any stoploss you keep ? OTM or ATM ? Please post your assumptions in backtests...any crises stoploss ? last 5 years must have thrown all such possibilities.....please post your views.

ST

Hello ST

Delay response due to Holiday outing ! ! ! !

Strategy should be only one entry every month.

Entering the trade on settlement day, selling call and put.

January Settlement closing say 6030, just see February Series Call and Put 6000 or 6100. Add the premium, if premium is 279 and above then sell, we should cover the same in the end of the next expiry.

I will post more information how to protect, if either call or put going one side above our selling price ! ! ! ! !

July 2011 to July 2012, file enclosed.

http://www.4shared.com/office/h6vNqUTY/callandput.html?

Password : callandput

Rish

 

[DanPickUp]

Dear Rish

Please correct me when I miss interpret your post. The two positions in the picture have a premium of over 279. Is it that what you mean?

DanPickUp

 

[Rish]

Dear Rish

Please correct me when I miss interpret your post. The two positions in the picture have a premium of over 279. Is it that what you mean?

DanPickUp

Add 6000 call and put premium.

 

[DanPickUp]

Add 6000 call and put premium.

Ok, that would be less as mentioned by you. Correct?

 

[Rish]

Ok, that would be less as mentioned by you. Correct?

Yes, exactly

 

[DanPickUp]

Ok, get it and thanks to reply.

What you mention is quit an other approach compare to what dear Jamit_05 is posting.

You go for a short straddle and need some high vola on the underlying to get the 276 and more on premium and he is entering the market with a synthetic long call and then want to reduce his lots after certain market moves.

Part time trader on the other hand is doing the idea with a long straddle and takes out some money after certain market moves.

Interesting stuff. :thumb:

Good trading / DanPickUp

 

[jamit_05]

January Settlement closing say 6030, just see February Series Call and Put 6000 or 6100. Add the premium, if premium is 279 and above then sell, we should cover the same in the end of the next expiry.

So as per the excel sheet the total should be more than 279; So this month its "No Trade"; Right?

 

[Rish]

So as per the excel sheet the total should be more than 279; So this month its "No Trade"; Right?

Yes, no trade this month