Low Risk Low Returns- Target 50 NF per month per NF Lot
- Thread starter jamit_05
- Start date
thanks 
I am looking for entirely intraday(or intraminutes to be more precise..) .
In this case time decay and other calculator inputs will not have noticeable significance...
I am looking for entirely intraday(or intraminutes to be more precise..) .
In this case time decay and other calculator inputs will not have noticeable significance...
http://vindeep.com/Derivatives/NSEOptionsCalculator.aspx
Sold 18July 11600CE+PE 83+116=199
11600PE Covered... @ 118 Loss 2
and 11500PE Sold 69
Therefore, Net Collection: 83+69-2 = 150
Squared off 11500PE @ 82 Loss 12
and Sell 11400PE @ 44
Net Collected: 83+44-2-12 = 113
CMP 40+46=86 :: Gain 27
11600CE is highly likely to expire worthless. And if 11400 too falls in line, then total collection will be profit.
11600PE Covered... @ 118 Loss 2
and 11500PE Sold 69
Therefore, Net Collection: 83+69-2 = 150
Squared off 11500PE @ 82 Loss 12
and Sell 11400PE @ 44
Net Collected: 83+44-2-12 = 113
CMP 40+46=86 :: Gain 27
11600CE is highly likely to expire worthless. And if 11400 too falls in line, then total collection will be profit.
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Sold 18July 11600CE+PE 83+116=199
11600PE Covered... @ 118 Loss 2
and 11500PE Sold 69
Therefore, Net Collection: 83+69-2 = 150
Squared off 11500PE @ 82 Loss 12
and Sell 11400PE @ 44
Net Collected: 83+44-2-12 = 113
CMP 40+46=86 :: Gain 27
-----------------------------------
Squared off 11400PE @ 24
Squared off 11600CE@ 50 and Sold 11550CE@ 74
Net Collected: 83+44-2-12 = 113 -24 -50 + 74 = 113
Now we only have 18July 11550CE 75
CMP 73 :: Gain 113-73= 40 points.
Risk control
* Now if today goes across 11600 then I will take whatever loss, and shift the shorted position to 18July 11500PE. Will stay 50 points away.
* If price goes down to 11500, then I will Sell 18July11400. Will try to stay 100 points away. Seeing the downtrend it makes sense to wait for some downmove before shorting. Whereas, ideally, I should now have covered 11400PE
11600PE Covered... @ 118 Loss 2
and 11500PE Sold 69
Therefore, Net Collection: 83+69-2 = 150
Squared off 11500PE @ 82 Loss 12
and Sell 11400PE @ 44
Net Collected: 83+44-2-12 = 113
CMP 40+46=86 :: Gain 27
-----------------------------------
Squared off 11400PE @ 24
Squared off 11600CE@ 50 and Sold 11550CE@ 74
Net Collected: 83+44-2-12 = 113 -24 -50 + 74 = 113
Now we only have 18July 11550CE 75
CMP 73 :: Gain 113-73= 40 points.
Risk control
* Now if today goes across 11600 then I will take whatever loss, and shift the shorted position to 18July 11500PE. Will stay 50 points away.
* If price goes down to 11500, then I will Sell 18July11400. Will try to stay 100 points away. Seeing the downtrend it makes sense to wait for some downmove before shorting. Whereas, ideally, I should now have covered 11400PE
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Net Collected: 83+44-2-12 = 113 -24 -50 + 74 = 113
Now we only have 18July 11550CE CMP 83
Gain 113-83= 30 points.
Essentially, I hv bet all my gains on a down move; double or nothing. However, this is wrong. The positions should be delta neutral.
18July11550CE went made a high of 94... this spread was badly managed today, what if tomorrow the market explodes 150 points gap-up....
Today market closed at 15580... so I shouldve shifted 11600 of 25July, thereby collecting a higher premium and going OTM.
Sure, the trend is down, so 11550Ce will crash to 15 or so before Tuesday since 11600 has max OI for 18July. But, the point is we need to tackle risk.
Now we only have 18July 11550CE CMP 83
Gain 113-83= 30 points.
Essentially, I hv bet all my gains on a down move; double or nothing. However, this is wrong. The positions should be delta neutral.
18July11550CE went made a high of 94... this spread was badly managed today, what if tomorrow the market explodes 150 points gap-up....
Today market closed at 15580... so I shouldve shifted 11600 of 25July, thereby collecting a higher premium and going OTM.
Sure, the trend is down, so 11550Ce will crash to 15 or so before Tuesday since 11600 has max OI for 18July. But, the point is we need to tackle risk.
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Sure Max OI changes quickly. One cannot possibly follow it.
I think it is wise to make sure that the position never goes ITM. The side which in direction of the trend should be 100 points away, and the other could be 50 points or ATM.
If any side gets too close or slightly ITM, then shift it as per the above rules. This will happen at a slight loss, but risk is averted.
If any side gets too far, then shift it closer. This will happen at a profit, and further opportunity is taken.
I have done it recently, and it is profitable.
I think it is wise to make sure that the position never goes ITM. The side which in direction of the trend should be 100 points away, and the other could be 50 points or ATM.
If any side gets too close or slightly ITM, then shift it as per the above rules. This will happen at a slight loss, but risk is averted.
If any side gets too far, then shift it closer. This will happen at a profit, and further opportunity is taken.
I have done it recently, and it is profitable.
Collected: 83+44-2-12 = 113 -24 -50 + 74 = 113
18July 11550CE CMP 53
Gain 113-53= 60 points.
Pending: Sell 11400PE
Note.... how inspite of taking all that risk there has been no benefit. The earlier pair of 11600CE+11400PE is 46, whereas 11550CE is at 52. I have extracted no benefit at all inspite of taking the risk.
18July 11550CE CMP 53
Gain 113-53= 60 points.
Pending: Sell 11400PE
Note.... how inspite of taking all that risk there has been no benefit. The earlier pair of 11600CE+11400PE is 46, whereas 11550CE is at 52. I have extracted no benefit at all inspite of taking the risk.
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