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

[jamit_05]

One Wing Iron butterfly (I bought the wrong wing though)

13June

Sell 11900 115+113
Buy 11700 PE 47
----------------------
Collected: 181

Sold 11700PE for 33
Bought 11800PE for 53
----------------
Paid 20

Sold 11800PE 43
Bought 11900PE 65
---------
Paid 22

Sold 12100 CE 77



Current Situation:

13June PE Side:

11900 @ 113 CMP 53 = +60 points/
WING: Bought 11700PE, paid 47+42=90 points. CMP 60 = -30 points

PE Side Net Profit: 30 points

13June Ce Side
Sold 11900 CE 118 CMP 188 M2M-Loss 70 poiints

Sold 12100 CE 77 CMP 73 = +0 Squared Off
Sold 12200 CE 57 CMP 37 = +20 Squared Off

Ce side Net Loss 70-20 = 50 points


Today:

Selling 13June12000PE 80 points

 

[jamit_05]

Spot 11900
Sell 6June 11900 CE 102 CMP 100
Sell 6June 11900 PE 92 CMP 5
-------------
Sell 6June 12000 CE 72 CMP 33
Sell 6June 12000 PE 40 CMP 30

Collected = 102+92+72+40 = 306
CMP = 165
Expense = 10

Net P/L = 131

All positions squared off.

 

[jamit_05]

11900 @ 113+118 CMP 66+88
Sold 13June12000PE 80 CMP 150

Collected: 230+80 = 310
CMP = 154+150= 305

 

[jamit_05]

11900 @ 113+118 CMP 50+86
Sold 13June12000PE 80 CMP 153
Sold 13June19000CE 65 CMP 50

Collected: 230+80+65 = 375
CMP: 140+153+50 = 345

Around 19050 this will be a perfect time to get out of the trade with around 100 points profit.

 

[jamit_05]

11900 @ 113+118 CMP 53+61
******Squared off Sold 13June12000PE 80 CMP 75 No Gains.
******Squared off Sold 13June19000CE 65 CMP 100 Loss 35 points

Sold 13June12000CE 43 CMP 21


Collected: 230+80-75+65-100+43 = 240
CMP: 114+21= 135
Expense: 10
Gain: 95

There aren't any major news coming in till expiry. So, its wise to wait some more time before squaring off this trade.

 

[jamit_05]

******Squared off Sold 11900pE @ 118 CMP 30 Gains 88
******Squared off Sold 13June12000PE 80 CMP 75 Gain 5
******Squared off Sold 13June19000CE 65 CMP 100 Loss 35 points
******Squared off Sold 13June12000CE 43 CMP 21 Gain 20
******Squared off Buy 13June11850PE 21 CMP 18 loss 5 points
Expense 15 points

Net Gains : 88 + 5 - 35 +20 -5 -15 = 58

Balance Positions.
-----------------------
Sold 13June11900CE @ 113 CMP 79
Buy 13June12000CE 24 cmp 25
****Squared off Sold 13June11950PE 41 CMP 39, since market has come back below 12000. Upside threat is now not there.

 

[jamit_05]

******Squared off Sold 11900pE @ 118 CMP 30 Gains 88
******Squared off Sold 13June12000PE 80 CMP 75 Gain 5
******Squared off Sold 13June19000CE 65 CMP 100 Loss 35 points
******Squared off Sold 13June12000CE 43 CMP 21 Gain 20
******Squared off Buy 13June11850PE 21 CMP 18 loss 5 points
Expense 15 points

Net Gains : 88 + 5 - 35 +20 -5 -15 = 58


****Squared off Sold 13June11950PE 41 CMP 39, since market has come back below 12000. Upside threat is now not there.

Balance Positions.
-----------------------
Sold 13June11900CE @ 113 CMP 32
Buy 13June12000CE 24 cmp 8

The difference is, 25 points.
In case of a 100 point rise, this difference can become 90 points.
In case of a 100 point fall, 10.

Therefore, looking at the risk reward it seems logical to get out now.

Gain: 113+24-32-8= 97 points.


Total Gains in this set: 58+97 = 155.

Note, how the move to buy wings later when they became cheap, got us the last 55 points.

 

[jamit_05]

As expiry gets closer, we have lesser time and get lower premiums when selling. Therefore it gets difficult to manage the positions. Hence, I find myself squaring off the position a day or so before expiry, and taking 50 to 70% of the profit, instead of aiming for the whole pie.

Now, Starting a fresh set:

Selling: 20th June 11900 CE+PE @ 89+78=167

 

[jamit_05]

@[email protected]

In this, the basic strategy will be to sell and hold this pair. However, when price travels 100 points, will sell ATM such that we create a win-win situation.

For ex. if spot price goes up 100 points and touches 12000, we sell 20June12000 PE and collect the 70 point premium. After this 100 point travel, if price keeps going further up we benefit from 12000PE, and if it goes down it will be good for the original pair.

 

[[email protected]]

Ok. Thank You. Got it.
How to handle the fear of "Next day Gapup Gapdown" scenario