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

[jamit_05]

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


Liquidation:
(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

When I liquidated, before expiry I got a profit of 130 points.
However, if I had a strategy which allowed me to liquidate at expiry, then my profit would be:

10450-10300 = 150 * 10 = 1500
credit = 1090
cost = 1950
Net Profit = 640 - 40 = 600 points.

Huge Difference.... 100 points v/s 600 points.

It is a motivation strong enough to reassess the exit plan.

 

[jamit_05]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260


**note**
total 452
total 433
218+204=422

 

[jamit_05]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260


**note**
total 452
total 433
422
403 (premium is dropping)

 

[jamit_05]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260
Sell 10400 CE 190

**note**
total 452
total 433
422
403
380 (premium dropping in uptrend... )

 

[jamit_05]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260

Sell 10400 CE 190
Sell 10600 CE 198

**note**
total 452
total 433
422
403
380 (premium dropping in uptrend... )
330 wow !

 

[jamit_05]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232


**note**
10200 ce 261
10100 pe 191
total 452

How the 100 points spread has fallen from 450 to 330 in nine days !

 

[kingkrunal]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260

Sell 10400 CE 190
Sell 10600 CE 198

**note**
total 452
total 433
422
403
380 (premium dropping in uptrend... )
330 wow !

ok so.. going back to first step..

1x nf long - with 2x put hedge... and sold 1x 10200 put. AS Bullish view
next day added - added another 10200 put
and keep adding and then added 10100..
- did u cover the put anf write again the next day or keep shorting puts..
- can you please explain what was the plan by adding pe with this positive bias ?

thanks

 

[jamit_05]

ok so.. going back to first step..

1x nf long - with 2x put hedge... and sold 1x 10200 put. AS Bullish view
next day added - added another 10200 put
and keep adding and then added 10100..
- did u cover the put anf write again the next day or keep shorting puts..
- can you please explain what was the plan by adding pe with this positive bias ?

thanks

The core idea is being Delta neutral. Don't consider directional bias, for now.

Starting point is the Set of 1: 2 nifty, puts.
If market goes up, book profit on longs, v.v

Target: at expiry, I should get a little more than what I paid.
Gains will come in two ways

1) From the premium of the Options that are sold.
2) At expiry, we get to pocket the spread of In The Money options.

If this total gain (1+2) is greater than the amount invested in purchasing the Set, then its a success, no matter how small it is.

 

[jamit_05]

Set #4

BUY 10 lots NF NOV 10293
BUY 20 lots 10300PE NOV @ 267
Cost 5340 points

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260
-------------------------


Sell 10400 CE 190
Sell 10600 CE 198
Sell 10600 DEC CE 294
---------------------

1) Selling DEC CEs. If market continues the downward trend. I will get to pocket 100 pts more in premium. Else if the market goes up, I will lose the advantage of time decay, which is more for Nov than Dec.

2) Notice how the market turned upwards after making support at 10200.

 

[jamit_05]

BUY 10 lots NF NOV 10293 (CMP 505 gain 2120)
BUY 20 lots 10300PE NOV @ 267 (CMP 82 loss 3700 pts)
Cost 5340 points (loss 1580)

SELL 10200 PE 232
SELL 10200 PE 210
SELL 10200 PE 204
SELL 10200 PE 204
SELL 10100 PE 227
sell 10100 pe 260
-------------------------
1337

Sell 10400 CE 190
Sell 10600 CE 198
Sell 10600 DEC CE 294
---------------------
682

Net Gain 440 pts.

No Action today. Looking to sell more PEs.