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

[jamit_05]

Set #5

Carry forward loss of 800 points

10 Lots Jan NF 10575
15 lots Jan 10600 PE 275 (Nifty 10510)

Sell 10300 Jan PE 220 , at gap down open
Sell 10800CE Jan 230
Sell 10900CE Jan 220
Sell One Lot Jan NF 10980 (Gain 400)
Sell One Lot Jan NF 11020 (Gain 445)
Sell One Lot Jan NF 11030
-----------------------------
Gain 1965 points.

Selling of 3 NF lots turned out to be a good decision.
Even better decision was an earlier one where we foresaw Dec being a sideways month, and rolled over at a cost of 800 points. The recent gain of 1965 points more than covers earlier loss of 800 points.

Basically, Our Job Description is clear:

You get paid only if it is a strong month. Else, wisely manage the "time bombs" to minimize losses.

 

[jamit_05]

Set #6
--------
10 lots Jan PE 10800 188
10 lots Jan CE 10800 254

Sell Jan CE 10900 230
sell 10900ce jan 250
sell 10950 CE jan 245
Sell 10800 Jan CE 340
SELL 10700 JAN PE 170 (We have lots of PEs to be sold)

 

[jamit_05]

Set #5

Carry forward loss of 800 points

10 Lots Jan NF 10575
15 lots Jan 10600 PE 275 (Nifty 10510)

Sell 10300 Jan PE 220 , at gap down open
Sell 10800CE Jan 230
Sell 10900CE Jan 220
Sell One Lot Jan NF 10980 (Gain 400)
Sell One Lot Jan NF 11020 (Gain 445)
Sell One Lot Jan NF 11030

Sell One Lot Jan 10750 PE 190

This can give us a loss of 150 points if it closes ITM. But we have a month to ponder on that.
It can also prove lucrative if market goes back up, next week, and 190 points premium collected would be free money!

 

[jamit_05]

Set #5

Carry forward loss of 800 points
15 lots Jan 10600 PE 275 (Nifty 10510)
-----------------------------------------
Invested: 15*275 = 4125+800 = 4925

10 Lots Jan NF 10575
CMP Jan NF = 10814

Sell One Lot Jan NF 10980 (Gain 400)
Sell One Lot Jan NF 11020 (Gain 445)
Sell One Lot Jan NF 11030
--------------
Gain: 1290

Gain from 7 lots balance = 239 * 7 = 1670
NF Gain: 1670+1290 = 2960

Holding One lot of JAN PE 10600 as Bear Put Spread. To have a scope to get 300 points at Jan expiry
**Sell 10300 Jan PE 220 , at gap down open

Balance 14 lots Jan 10600 PE has value of 135 each, total 135*14=1890
Sell 10800CE Jan 230 218 = +12
Sell 10900CE Jan 220 165 = +55
+220 pts of **
----------
Value: 1890 +12 +55 +220 = 2177

So final calculations:
2960+2177-4925 = 212 Gain

So far we stand to gain 212 points from Set #5. Since gains are modest, will continue managing it.

 

[jamit_05]

Set #5

Carry forward loss of 800 points

10 Lots Jan NF 10575
15 lots Jan 10600 PE 275 (Nifty 10510)


Sell 10800CE Jan 230
Sell 10900CE Jan 220
Sell One Lot Jan NF 10980 (Gain 400)
Sell One Lot Jan NF 11020 (Gain 445)
Sell One Lot Jan NF 11030

Sell Jan 10750 PE 190
Sell 10300 Jan PE 220
Sell 10650 Jan PE 178

 

[jamit_05]

Set #6
--------
10 lots Jan PE 10800 188
10 lots Jan CE 10800 254

Sell Jan CE 10900 230
sell 10900ce jan 250
sell 10950 CE jan 245
Sell 10800 Jan CE 340
SELL 10700 JAN PE 170
Sell 10650 Jan PE 178

 

[jamit_05]

Set #5

Carry forward loss of 800 points

10 Lots Jan NF 10575
15 lots Jan 10600 PE 275 (Nifty 10510)


Sell 10800CE Jan 230
Sell 10900CE Jan 220
Sell One Lot Jan NF 10980 (Gain 400)
Sell One Lot Jan NF 11020 (Gain 445)
Sell One Lot Jan NF 11030

Sell Jan 10750 PE 190
Sell 10300 Jan PE 220
Sell 10650 Jan PE 178
Sell 10700 Jan PE 165

 

[jamit_05]

Set #6
--------
10 lots Jan PE 10800 188
10 lots Jan CE 10800 254

Sell Jan CE 10900 230
sell 10900ce jan 250
sell 10950 CE jan 245
Sell 10800 Jan CE 340

SELL 10700 JAN PE 170
Sell 10650 Jan PE 178
Sell 10700 Jan PE 165

 

[jamit_05]

Have decided to settle Set#5 and #6, because time decay is going to be fast next week onwards.

Settlement of Set #5

Carry forward loss of 800 points

10 Lots Jan NF 10575
15 lots Jan 10600 PE 275 (Nifty 10510) CMP 85

Sell 10800CE Jan 230 CMP 245 -15
Sell 10900CE Jan 220 CMP 200 +20

Sell 10300 Jan PE 220 CMP 40 +180


Already sold (3 lots NF sold, 7 pending)
Sell One Lot Jan NF 10980 (Gain 400)
Sell One Lot Jan NF 11020 (Gain 445)
Sell One Lot Jan NF 11030 (gain 455)
Total: +1300

-----------------------------

Sell Jan 10750 PE 190 (Buyback @ 119) (gain 70)
Sell 10650 Jan PE 178 (Buyback @ 94) (gain 80)
Sell 10700 Jan PE 165 (Buyback @ 107) (gain 60)
Total: +210


10 Lots Jan NF 10575 CMP 10910
gain: 335
7 lots in hand, Net: +2345

15 lots Jan 10600 PE 275 (Nifty 10510) CMP 85
loss: 190 per lot
11 lots in hand... Net: -2090

Final Result..... 1300+210+2345-2090-800 = 965 Net Gain.
One Bear Put Spread is open (10600//10300)

Right on target. The core of this method is to control risk, and that was accomplished.

 

[jamit_05]

Set #6
--------
10 lots Jan PE 10800 188 CMP 133 .... -55
10 lots Jan CE 10800 254 CMP 265 .... +11
Sell 10800 Jan CE 340 CMP 265 ... +75

Sell Jan CE 10900 230
sell 10900ce jan 250
sell 10950 CE jan 245
-----------------------------
3 CEs blocked in Bull Call Spread rest 7 CEs to be squared off, while the premium is still good.
Net: 7*11 = +77 points


SELL 10700 JAN PE 170
Sell 10650 Jan PE 178
Sell 10700 Jan PE 165
---------------------
3 PEs blocked, 7 PEs squared
Net: 7*-55 = -385

Net Loss of 277 points. With following Positive Spreads open:

Jan CE 10900 // Jan CE 10800 => Max Gain 100 points
Jan CE 10900 // Jan CE 10800 => Max Gain 100 points
Jan CE 10950 // Jan CE 10800 => Max Gain 150 points

Jan PE 10700 // Jan PE 10800 => Max Gain 100 points
Jan PE 10650 // Jan PE 10800 => Max Gain 150 points
Jan PE 10700 // Jan PE 10800 => Max Gain 100 points

Therefore a profit of around 300 points is guaranteed. Hence, the result is breakeven.
Nothing impressive in that aspect, but Set #6 has been educational. From the learning, I have made a modification, will apply that in Feb in Set #7.