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

A

angira

Well-Known Member
#471
#471
Thanx Jamitbhai,
Simple Butterfly is good one... one more question.
How can i protect the pair this way, suppose we want to short OTM 10700pe-11000ce pair,
also OI stand near 10700pe-11000ce and we are near 10900.

Angira...
 
jamit_05

jamit_05

Well-Known Member
#472
#472
angira said:
Thanx Jamitbhai,
Simple Butterfly is good one... one more question.
How can i protect the pair this way, suppose we want to short OTM 10700pe-11000ce pair,
also OI stand near 10700pe-11000ce and we are near 10900.

Angira...
Click to expand...
So we are shorting 200 point OTMs, then we must protect it by buying further 100/200 points OTMs, buy 10500PE - 11200 CE. This would hve a higher probability of pocketing the entire premium.
 
A

angira

Well-Known Member
#473
#473
Jamitbhai

ITM next month option price reduces fast then ATM or OTM ?
Or its depends other option technicals pera like delta-theta or any other, i don't know much about it.

Bcoz we already discussed here that I've Shorted FEB-pair last month 10600ce-11200pe still track near 707 which shorted near 834,
we are near 11000, And its gives 100+ points.So have to close the trade is better and prepare for new MAR-pair.

Angira...
 
jamit_05

jamit_05

Well-Known Member
#474
#474
angira said:
Jamitbhai

ITM next month option price reduces fast then ATM or OTM ?
Or its depends other option technicals pera like delta-theta or any other, i don't know much about it.

Bcoz we already discussed here that I've Shorted FEB-pair last month 10600ce-11200pe still track near 707 which shorted near 834,
we are near 11000, And its gives 100+ points.So have to close the trade is better and prepare for new MAR-pair.

Angira...
Click to expand...
I think ATM has max premium hence it gives max theta, which is time decay. ITM may appear to have higher value, buy premium is lesser than ATM, hence theta works less on ITM.

I think, you should book profit on already shorted ones. Feb month is likely to give big moves.
 
jamit_05

jamit_05

Well-Known Member
#475
#475
Buy 20 Lots Feb NF @ 10885
Buy 50 lots March PE 10800 @ 242 spot 10825.
Cost: 12100 + 700(rollover cost) = 12800 points
--------------------------------------
Jan 25th gained 133 points
Jan 29th gained 84 points
Jan 30th total gained 59 points
Jan 31st total gain 382 pts
FEb 1st total gain 382 pts
Feb 4th gained 192
Total gained 1232

--------------------------------
sell 8 lots March PE 10800 @ 192 * 8 = 1536 collected

1st Feb LOTS sold from stock
Sell NF Feb 10894 - 10885 = +9
Sell NF Feb 10960 - 10885 = +75
Sell NF Feb 10970 - 10885 = +85
gain = 169

total 169+1536 = 1705
target 13000
---------------------------------

Feb 6th
sold 2 lots 11031
 
Last edited:
jamit_05

jamit_05

Well-Known Member
#476
#476
Buy 20 Lots Feb NF @ 10885
Buy 50 lots March PE 10800 @ 242 spot 10825.
Cost: 12100 + 700(rollover cost) = 12800 points
--------------------------------------
Jan 25th gained 133 points
Jan 29th gained 84 points
Jan 30th total gained 59 points
Jan 31st total gain 382 pts
FEb 1st total gain 382 pts
Feb 4th gained 192
Total gained 1232

--------------------------------
sell 8 lots March PE 10800 @ 192 * 8 = 1536 collected

1st Feb LOTS sold from stock
Sell NF Feb 10894 - 10885 = +9
Sell NF Feb 10960 - 10885 = +75
Sell NF Feb 10970 - 10885 = +85
gain = 169

total 169+1536 = 1705
target 13000
---------------------------------

Feb 6th
sold 2 lots 11031
sold 2 lots 11040
sold 1 lots 11049
sold 1 lots 11058
sold 1 lots 11079
Sold 1lots 11010
 
Last edited:
jamit_05

jamit_05

Well-Known Member
#477
#477
Buy 20 Lots Feb NF @ 10885
Buy 50 lots March PE 10800 @ 242 spot 10825.
Cost: 12100 + 700(rollover cost) = 12800 points
--------------------------------------
Jan 25th gained 133 points
Jan 29th gained 84 points
Jan 30th total gained 59 points
Jan 31st total gain 382 pts
FEb 1st total gain 382 pts
Feb 4th gained 192
feb 6th loss 86
feb 7th loss 70
Total gained 1076
--------------------------------
sell 8 lots March PE 10800 @ 192 * 8 = 1536 collected
Sell NF Feb 10894 - 10885 = +9
Sell NF Feb 10960 - 10885 = +75
Sell NF Feb 10970 - 10885 = +85
gain = 169
total 169+1536 = 1705
-------------------------------------------
Sold 1 lots 11110 - 10885 = 225 points
sold 3 lots Mar PE 11100 @ 225 = 675 points
total 225+675= 900
--
Sold 1 lots 11130 - 10885 = 245 points
sold 3 lots Mar PE 11100 @ 213 = 639 points
total 245 + 639 = 884
--
sold 2 lots 11031 - 10885 = 146*2
sold 3 lots Mar 10800 PE 125*3 = 375
sold 3 lots Mar 11000 PE 187*2 = 374
total 1041

Target 13000
Collected: 3489 + 1041
balance pts: 8470

Balance stock
Buy 13 Lots Feb NF @ 10885
Buy 30 lots March PE 10800 @ 242 spot 10825.

Bought more:
Buy 7 lots Feb NF @ 11054
Buy 20 lots March PE 11000 @ 187 spot 11032
Cost 3740 Points.

Total Recovery Target 8470+3740 = 12210 (rounded up to 12500)

Final Stock: 20 NF, 50 PEs. Target 12500 recovery. Game On.

-------------------------------------------
Actions Feb 8th
Since I have an upbias, I will sell PEs first.
Sell 3 lots March PE 11000 @ 199

Sell 3 lots March PE 11000 @ 197 -- Speculative, since the day is behaving strangely.
 
Last edited:
A

angira

Well-Known Member
#479
#479
jamit_05 said:
I think ATM has max premium hence it gives max theta, which is time decay. ITM may appear to have higher value, buy premium is lesser than ATM, hence theta works less on ITM.

I think, you should book profit on already shorted ones. Feb month is likely to give big moves.
Click to expand...
Jamitbhai,

Nifty above 11000, This Pair still stands near 690.

Angira...
 
jamit_05

jamit_05

Well-Known Member
#480
#480
Buy 20 Lots Feb NF @ 10885
Buy 50 lots March PE 10800 @ 242 spot 10825.
Cost: 12100 + 700(rollover cost) = 12800 points
--------------------------------------
Jan 25th gained 133 points
Jan 29th gained 84 points
Jan 30th total gained 59 points
Jan 31st total gain 382 pts
FEb 1st total gain 382 pts
Feb 4th gained 192
feb 6th loss 86
feb 7th loss 70
Total gained 1076
--------------------------------
sell 8 lots March PE 10800 @ 192 * 8 = 1536 collected
Sell NF Feb 10894 - 10885 = +9
Sell NF Feb 10960 - 10885 = +75
Sell NF Feb 10970 - 10885 = +85
gain = 169
total 169+1536 = 1705
-------------------------------------------
Sold 1 lots 11110 - 10885 = 225 points
sold 3 lots Mar PE 11100 @ 225 = 675 points
total 225+675= 900
--
Sold 1 lots 11130 - 10885 = 245 points
sold 3 lots Mar PE 11100 @ 213 = 639 points
total 245 + 639 = 884
--
sold 2 lots 11031 - 10885 = 146*2
sold 3 lots Mar 10800 PE 125*3 = 375
sold 3 lots Mar 11000 PE 187*2 = 374
total 1041

Target 13000
Collected: 3489 + 1041
balance pts: 8470

Balance stock
Buy 13 Lots Feb NF @ 10885
Buy 30 lots March PE 10800 @ 242 spot 10825.

Bought more:
Buy 7 lots Feb NF @ 11054
Buy 20 lots March PE 11000 @ 187 spot 11032
Cost 3740 Points.

Total Recovery Target 8470+3740 = 12210 (rounded up to 12500)

Final Stock: 20 NF, 50 PEs. Target 12500 recovery. Game On.

-------------------------------------------
Actions Feb 8th

Since I have an upbias, I will sell PEs first.

Sell 3 lots March PE 11000 @ 199
Sell 3 lots March PE 11000 @ 197
Sell 2 lots March PE 11000 @ 217
Sell 2 lots March PE 11000 @ 232
 
Last edited:
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