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

jamit_05

Well-Known Member
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)
short: 10450 pe nov 210 (10453 WED) **

BULL CALLS
BUY 10300 OCT CE 193 -> Sold 10400 OCT CE 183 (cost Rs.10 return 100 pts)

PURCHASED OTM CALLS
10 lots BUY 11100 NOV CE @ Rs.50 -> COST 500 points. <Since market is oversold>
 

jamit_05

Well-Known Member
Now, the bias is bullish. I believe the market will travel the next 300 points upwards before it travels 300 points down. Hence, it makes sense to sell PUTS or BUY CALLS at every down move.

As I continue Set#2, will start a new set which is going to be different. It will only have five working days.

BUY

10 lots OCT 10450 CE 93
10 lots OCT 10450 PE 100

Cost 200 points.

Strategy: If we leave it as it is, then within 5 working days we expect market to close 200 points above or below 10450. Since we cannot depend on it, we will sell these options at every strong move, even intraday.

Trend: Prices have gathered some stiff downward momentum on the hourly chart. Next Stop 10250.

Action: Will sell CE at hourly strong up candle, sell PE at down candle.
 

jamit_05

Well-Known Member
Continuing Set #2

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)
short: 10450 pe nov 210 (10453 WED)
short: 10400 pe nov 238 (10330 fri)
short: 10400 pe nov 238 (10330 fri)**All ten lots sold
short: 10300 pe nov 197 (10345 fri) Extra Lot Sold, leaving NF open.. risky but 10%

total Premium + spread = 7482


BULL CALLS
BUY 10300 OCT CE 193 -> Sold 10400 OCT CE 183 (cost Rs.10 return 100 pts)

PURCHASED OTM CALLS
1) 10 lots BUY 11100 NOV CE @ Rs.50 -> COST 500 points. <Since market is oversold and theta is low>
2) 3 lots BUY 10700 NOV CE @ Rs.126 -> COST 378 points. I wish to convert this to Bull Call Spread, in case the market goes back up. Else I will have to lose some time decay.

Purchase ATM CEs
1) 3 lots BUY 10400 NOV CE @ Rs.232 -> 700 points. (convert this to bull call)

Now, we are clearly in profit due to this sharp down move. Therefore, it makes sense to spend some gains to buy insurance on the flip side.
 
Last edited:

jamit_05

Well-Known Member
Set #3

BUY
10 lots OCT 10450 CE 93
10 lots OCT 10450 PE 100
cost: 1950 points.

Sell
4 lots OCT 10300 PE 101
6 lots OCT 10300 PE 115
credit: 1090

If market expires here, I get 640 points in profit. So, let me use some of this profit to insure myself from an upmove.

BUY: 3 lots OCT 10300 CE 86
cost: 258
 
Last edited:

jamit_05

Well-Known Member
set #2

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)
short: 10450 pe nov 210 (10453 WED)
short: 10400 pe nov 238 (10330 fri)
short: 10400 pe nov 238 (10330 fri)**All ten lots sold
short: 10300 pe nov 197 (10345 fri) Extra Lot Sold, leaving NF open.. risky but 10%

total Premium + spread = 7482


BULL CALLS
BUY 10300 OCT CE 193 -> Sold 10400 OCT CE 183 (cost Rs.10 return 100 pts)

PURCHASED OTM CALLS
1) 10 lots BUY 11100 NOV CE @ Rs.50 -> <LOSS 240>
2) 3 lots BUY 10700 NOV CE @ Rs.126 -> <LOSS 90>
3) 10 lots BUY 10700 NOV CE @ Rs.96

Purchase ATM CEs
1) 3 lots BUY 10400 NOV CE @ Rs.232 -> 700 points. (convert this to bull call)
 

jamit_05

Well-Known Member
Set #3

BUY
(4) 10 lots OCT 10450 CE 93
(1) 10 lots OCT 10450 PE 100
cost: 1950 points.

Sell
(3)4 lots OCT 10300 PE 101
(3)6 lots OCT 10300 PE 115
(2) credit: 1090

<Cheating... deleting these transactions as thought they never happened....>

BUY: 3 lots OCT 10300 CE 86
cost: 258

[/QUOTE]

If I liquidate the whole set, I get

(1) 10450 PE 217 * 10 = 2170 points
(2) credit = 1090
(3) 10300 PE 118*10 = -1180

Total: 2080
Paid 1950
Profit 130 points.
less 30 points expense for 30 lots of transaction.
Net Profit 100 points

For investment of roughly 2000 points, a return of 100 points in 3 days is a good ROI.

Plus
(4) 10 lots of 10450 CE lie in spare. Will liquidate them at first uptick.
 
Last edited:

jamit_05

Well-Known Member
liquidating set#2 as well.

Set #2

Long: 10 NF 11009 <CMP 10293 loss 716*10=7160 points>
Long: 20 PE Nov 11000 260 <CMP 822 profit 16440 points>
Paid: 5300 points. <paid 5300>

-----
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)
short: 10450 pe nov 210 (10453 WED)
short: 10400 pe nov 238 (10330 fri)
short: 10400 pe nov 238 (10330 fri)**All ten lots sold

<credit 2435, cmp 3754, loss 1319>

Net Profit:
-7160+16440-5300+2435-3754=2661
expense 40 points for 40 lots of transactions.

Net profit 2600 points
<ignoring some trades as they were not a part of the core exercise>
 

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