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

[jamit_05]

Some serious grinding of options prices is going on. I think, tomorrows action will be phenomenal.

 

[jamit_05]

Sell 11400 CE 23rd March 257 Weeklies CMP 400, rest all are OTM
Sell 11400 PE 23rd March 226; bought at 60
Sold 11200 PE 23rd March at 40
Sold 12000 CE 23March Rs.56
Sold 12200 CE 23March Rs.67
Sold 12200 CE 23March Rs.89
Sold 11000 PE 23March Rs.38
Sold 11700 PE 23March Rs.197

Sold 12500 CE 23March Rs.30

 

[kingsmasher1]

@jamit_05 If possible may be you can post the payoff graph as well.

 

[jamit_05]

@jamit_05 If possible may be you can post the payoff graph as well.

The pay-off graph does not help us in this type of options trading, because we are counting on all our sold options to expire worthless.

Nonetheless

Note how the graph shows that we are currently in the center of the curve, means no loss no profit, a balanced spread.

Our loss starts below 11150
and above 12300
CMP 11750. So, for our profitability to be threatened the market has to swing 500 points on either side. And if it does, I will short more OTMs. So, it appears fairly safe.

 

[kingsmasher1]

The pay-off graph does not help us in this type of options trading, because we are counting on all our sold options to expire worthless.

Nonetheless

View attachment 35038

Note how the graph shows that we are currently in the center of the curve, means no loss no profit, a balanced spread.

Our loss starts below 11150
and above 12300
CMP 11750. So, for our profitability to be threatened the market has to swing 500 points on either side. And if it does, I will short more OTMs. So, it appears fairly safe.

During result days a 100-200 point gap opening followed by a big trend if happens won't be surprising. I would have brought far OOM options in addition to shorting in both directions to somewhat cap the max loss.

 

[jamit_05]

During result days a 100-200 point gap opening followed by a big trend if happens won't be surprising. I would have brought far OOM options in addition to shorting in both directions to somewhat cap the max loss.

There is a huge gap in between 11440 and 11601, this will most likely be filled tomorrow. There are news coming in which indicate that the picture may not be as rosy for the saffron party as the exit polls have made it out to be. For the past two days the market has paused due to some lack of confidence.

Nonetheless, I am continuously reminding myself that as small traders our job is to react, not expect. And, especially tomorrow, proper and timely reaction will be crucial....

 

[jamit_05]

23March Max OI is 1000 points apart, 11100 to 12000

It is going to be a historical day, swings will be wide

 

[jamit_05]

Sell 11400 CE 23rd March 257 Weeklies CMP 487 sqrd off
Sold 12000 CE 23March Rs.56 sqrd off 36
Sold 12000 CE 23March Rs.81 sqrd off 36
----------------------------------------------
Loss: -165

Sold 12200 CE 23March Rs.67 Sqrd off 5
Sold 12200 CE 23March Rs.89 Sqrd off 5
Sold 12200 CE 23March Rs.50 Sqrd off 5
Sold 12500 CE 23March Rs.30 Sqrd off 2
Gain : 216



-------------------------------------------
Sold 11000 PE 23March Rs.38 Sqrd at 3
Sold 11700 PE 23March Rs.197 Squared off at Rs.80
Sold 11200 PE 23rd March at 40 Sqrd at 2
Sell 11400 PE 23rd March 226; bought at 60

Gain from PEs = 350 points

Net Gain: 350+216-165 = 401

 

[jamit_05]

Fresh Spread

Spot 11832
Sell 30March 11800 CE 189
Sell 30March 11800 PE 118

 

[kingkrunal]

Fresh Spread

Spot 11832
Sell 30March 11800 CE 189
Sell 30March 11800 PE 118

is this against your june otions buy ?