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

[jamit_05]

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Short : 2 lots 11300 CE NOV 162
Collected: 324
Short: 2 lots 10600 PE NOV 152 (10911)
Collected: 304

total collected: 628

 

[jamit_05]

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Short : 2 lots 11300 CE NOV 162
Bought 110. Gain 50*2=100pts

Short: 2lots 11100ce Nov 185 (10850)
Bought 150. Gain 70pt

Short 11000 195*2=390
Collected: 390
Short: 2 lots 10600 PE NOV 152 (10911)
Collected: 304

Short: 1 lot 10800 PE NOV 223 (10858)
Short: 10700 pe Nov 240 (10697)
Short: 10600 pe Nov 254 (10580)

 

[jamit_05]

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Short : 2 lots 11300 CE NOV 162
Bought 110. Gain 50*2=100pts
------
Short: 2lots 11100ce Nov 185 (10850)
Bought 150. Gain 70pt
------
Short 11000 CE 195*2=390
bought 125 gain: 140
-------
These gambles paid off 300 points. Now, will square off 2 lots 10600 PE NOV 152 (10911) on the next upday, taking the loss.
Short: 2 lots 10600 PE NOV 152 (10911)
Collected: 304
(Not how we shorted at 10911, but will happily cover at 10700, a small pullback, with a minor loss. Power of time decay)

Fresh straddle. PE leg on down day, CE leg on upday.
short 2 lots 10400 pe nov 200
collected: 400

Short: 1 lot 10800 PE NOV 223 (10858)
Short: 10700 pe Nov 240 (10697)
Short: 10600 pe Nov 254 (10580)
short: 10600 pe nov 254 (10600 EOD) <shorted an extra PE seeing that the market has hit a support region)
short: 10500 pe nov 250 (10513)
short: 10400 pe nov 245 (10413)

To make Bull Call: BUY 10450 OCT CE 232 (Will sell the other leg on next upclose)

 

[jamit_05]

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Short : 2 lots 11300 CE NOV 162
Bought 110. Gain 50*2=100pts
------
Short: 2lots 11100ce Nov 185 (10850)
Bought 150. Gain 70pt
------
Short 11000 CE 195*2=390
bought 125 gain: 140
-------

Shorted Straddles:

To Square-off:
Short: 2 lots 10600 PE NOV 152 (10911)
short 2 lots 10400 pe nov 200

Shorted Against long PEs:
Short: 1 lot 10800 PE NOV 223 (10858)
Short: 10700 pe Nov 240 (10697)
Short: 10600 pe Nov 254 (10580)
short: 10600 pe nov 254 (10600 EOD) <shorted an extra PE seeing that the market has hit a support region)
short: 10500 pe nov 250 (10513)
short: 10400 pe nov 245 (10413)
short: 10300 pe nov 283 (10312)

To make Bull Call:
BUY 10450 OCT CE 232 (Will sell the other leg on next upclose)
BUY 10300 OCT CE 193

 

[jamit_05]

It will be very (very) wrong to think that this method works, the way we have witnessed in last two attempts. Markets tends to drag most of the times. Losses tend to accumulate for months, and then a big move happens. It is almost never like what we've seen recently.

 

[jamit_05]

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Short : 2 lots 11300 CE NOV 162
Bought 110. Gain 50*2=100pts
------
Short: 2lots 11100ce Nov 185 (10850)
Bought 150. Gain 70pt
------
Short 11000 CE 195*2=390
bought 125 gain: 140
-------

Shorted Straddles:

To Square-off:
Short: 2 lots 10600 PE NOV 152 (10911)
lesson learned. When shorting straddles, make sure you move both the legs at the same time.

Squared off @ 202 at break-even <short 2 lots 10400 pe nov 200>

Shorted Against long PEs:
Short: 1 lot 10800 PE NOV 223 (10858)
Short: 10700 pe Nov 240 (10697)
Short: 10600 pe Nov 254 (10580)
short: 10600 pe nov 254 (10600 EOD) <shorted an extra PE seeing that the market has hit a support region)
short: 10500 pe nov 250 (10513)
short: 10400 pe nov 245 (10413)
short: 10300 pe nov 283 (10312)

To make Bull Call:
BUY 10450 OCT CE 232 (Will sell the other leg on next upclose)
Sold 10450 oct ce 150... lost 70 points.

This was a fiasco. Lesson learned: When dealing with current month options, go only with the immediate momentum, if any. The time is sharply against you in the current month.

BUY 10300 OCT CE 193 -> Sold 10400 OCT CE 183 (cost Rs.10 return 100 pts)
lucky that the market stopped here.


Short 300 points straddle:
(As I do not see market moving 300 points in one direction in 7 days time)
CMP 10450
Sold 2 lots OCT 11600 CE 77
Sold 2 lots OCT 11300 PE 97
total: 174

 

[jamit_05]

The real test for this method comes when the market is not volatile, moving less than 500 points in two months and monthly closing is dull. When three such months come back to back, and loss accumulates, that is the real test.

So much hassle for getting a measly 50 points per lot per month

 

[jamit_05]

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Short : 2 lots 11300 CE NOV 162
Bought 110. Gain 50*2=100pts
------
Short: 2lots 11100ce Nov 185 (10850)
Bought 150. Gain 70pt
------
Short 11000 CE 195*2=390
bought 125 gain: 140
-------

Shorted Straddles:

To Square-off:
Short: 2 lots 10600 PE NOV 152 (10911)
lesson learned. When shorting straddles, make sure you move both the legs at the same time.

Squared off @ 202 at break-even <short 2 lots 10400 pe nov 200>

Shorted Against long PEs:
Short: 1 lot 10800 PE NOV 223 (10858)
Short: 10700 pe Nov 240 (10697)
Short: 10600 pe Nov 254 (10580)
short: 10600 pe nov 254 (10600 EOD) <shorted an extra PE seeing that the market has hit a support region)
short: 10500 pe nov 250 (10513)
short: 10400 pe nov 245 (10413)
short: 10300 pe nov 283 (10312)

To make Bull Call:
BUY 10450 OCT CE 232 (Will sell the other leg on next upclose)
Sold 10450 oct ce 150... lost 70 points.

This was a fiasco. Lesson learned: When dealing with current month options, go only with the immediate momentum, if any. The time is sharply against you in the current month.

BUY 10300 OCT CE 193 -> Sold 10400 OCT CE 183 (cost Rs.10 return 100 pts)
lucky that the market stopped here.

-----------------------------
Short 300 points straddle:
(As I do not see market moving 300 points in one direction in 7 days time)
CMP 10450
Sold 2 lots OCT 11600 CE 77
Sold 2 lots OCT 11300 PE 97
total: 174

Squared off at 204... loss 60 points.
These current month straddles are too volatile.
------------------------------

SHORT straddle 2 LOTS 10234 11OCT18 EOD
10000 PE NOV 180
10500 CE NOV 173
Total: 350

 

[jamit_05]

Will focus on the following spreads now.

Long: 10 NF 11009
Long: 20 PE Nov 11000 260
Paid: 5300 points.
-----
Shorted Against long PEs:
Short: 1 lot 10800 PE NOV 223 (10858)
Short: 10700 pe Nov 240 (10697)
Short: 10600 pe Nov 254 (10580)
short: 10600 pe nov 254 (10600 EOD)
short: 10500 pe nov 250 (10513)
short: 10400 pe nov 245 (10413)
short: 10300 pe nov 283 (10312)

BUY 10300 OCT CE 193 -> Sold 10400 OCT CE 183 (cost Rs.10 return 100 pts)
lucky that the market stopped here.

10 lots BUY 11100 NOV CE @ Rs.50 -> COST 500 points. <Since market is oversold>
The trick is:
If market goes up, and 11100 NOV CE becomes ATM, these 10 lots will be worth around 2500 points.
If market keeps going down, the current setup will end in a sharp gain. Thus, creating a win-win situation by making an expense of 500 points.

I look forward to buying ATM CEs as well, on the next down leg, and creating Bull Call spreads to secure the gains from this down move.

 

[jamit_05]

Since prices are clearly oversold.

1) Now is a great time to buy Bull Calls.
2) And sell the last three legs of PE.
3) And probably prepare to buy a fresh set for DEC.