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

jamit_05

Well-Known Member
Sold 11100CE+PE 5September Expiry

106+118= 224 Collected.

Collected: 224

Loss: 20 points
Gain 13 points SOLD 11250 CE 29Aug 20 Squared off 7

Sold 11100 CE 5Sept 70

CMP: 71+151= 222
 
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jamit_05

Well-Known Member
Loss 50 points Buyback 11100PE at 168 (minus 118)
Gain 60 points Buyback 11100CE at 46 (minus 106)
Loss: 20 points
Gain 13 points SOLD 11250 CE 29Aug 20 Squared off 7

Sold 11100 CE 5Sept 70
CMP 46

Buy 26thSept 10750PE 115 (bearish view)
 
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jamit_05

Well-Known Member
Loss 50 points Buyback 11100PE at 168 (minus 118)
Gain 60 points Buyback 11100CE at 46 (minus 106)
Loss: 20 points
Gain 13 points SOLD 11250 CE 29Aug 20 Squared off 7

Sold 11100 CE 5Sept 70
CMP 46

Buy 26thSept 10750PE 115 (bearish view)
CMP 85

Closed.
 

angira

Well-Known Member
Jamitbhai,

nowadays in trending market, short weekly based MaX_OI ce or pe and for cover buy above/below
strike.

suppose NF near 11420, 3OCT MAX_OI [email protected] 11500ce
View Bearish,
short 11500ce + buy 11550ce
We have 3 to 4 days , iF it touch 11550 then have to exit or books whatever loss ? OR
Add any repairable leg or strategy?

Any view sir,

Angira...
 

angira

Well-Known Member
Jamitbhai,

nowadays in trending market, short weekly based MaX_OI ce or pe and for cover buy above/below
strike.

suppose NF near 11420, 3OCT MAX_OI [email protected] 11500ce
View Bearish,
short 11500ce + buy 11550ce
We have 3 to 4 days , iF it touch 11550 then have to exit or books whatever loss ? OR
Add any repairable leg or strategy?

Any view sir,

Angira...
Jamitbhai,

And Bearish trend has continued,
Booked +13 points......

Angira...
 

jamit_05

Well-Known Member
Earlier approach was to have delta neutral position, which would also be "Trend Neutral". This involved huge cost, which did not appear recoverable.

In this trial, I will be following couple of simple rules for following the trend, as a result the costs involved have significantly thinned down.

This trial, I will be betting on a down trend by Shorting NF, and buy protection for the next 200 points.

Covered Call Spread:
Buy CE 12200 16Jan 20 Lots @ 115
Sell CE 12500 30Jan 20 Lots @ 45
Paid Difference: 70 pts

Short NF
20 Lots @ 12255 (Premium: 35 pts)

This means, NF will becomes profitable beyond 70+35 points, which appears far more plausible than earlier approach.

On the flip-side, the purchased CE 12200 is giving complete cover till 16Jan and 12500. Beyond that real risk kicks in.

Profits

Profitability will depend on the exit policy.
 
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jamit_05

Well-Known Member
.
.


Covered Call Spread:
Buy CE 12200 16Jan 20 Lots @ 115
Sell CE 12500 30Jan 20 Lots @ 45
Paid Difference: 70 pts

Short NF
20 Lots @ 12255 (Premium: 35 pts)

.
.
.
Action:

Sold
12050 PE 30JAN 140
12000 PE 30JAN 150

Covered
2 lot NF 12115 --> Gain: 280 pts
 
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jamit_05

Well-Known Member
Action:

6/1
Sold
12050 PE 30JAN 140
12000 PE 30JAN 150

Covered
2 lot NF 12115 --> Gain: 280 pts

7/1

Sold 2 lots 12200 30Jan 48
Bought 2 lots 12500 30Jan 12
difference 36*2 = 72 pts Gained.


CURRENT POSITION

Covered Call Spread:
Buy CE 12200 16Jan 20 Lots @ 115 -- Balance 18 Lots
Sell CE 12500 30Jan 20 Lots @ 45 -- Balance 18 Lots
Gain: 72 pts


Short NF
20 Lots @ 12255 (Premium: 35 pts) -- Balance 18 Lots
Gain: 280 Pts


Sold
12050 PE 30JAN 140 6/1
12000 PE 30JAN 150 6/1
12050 PE 30JAN 155 7/1
Collected 445.
 
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jamit_05

Well-Known Member
70
6/1
Sold
12050 PE 30JAN 140
12000 PE 30JAN 150

Covered
2 lot NF 12115 --> Gain: 280 pts

7/1

Sold 2 lots 12200 30Jan 48
Bought 2 lots 12500 30Jan 12
difference 36*2 = 72 pts Gained.


Spreads

Covered Call Spread:
Buy CE 12200 16Jan 20 Lots @ 115 --
Sell CE 12500 30Jan 20 Lots @ 45 --
Squared off two pairs gained 70 pts -- Balance 18 Pairs

Short NF
20 Lots @ 12255 (Premium: 35 pts) -- Balance 18 Lots
Gain: 280 Pts


Sold
12050 PE 30JAN 140 6/1
12000 PE 30JAN 150 6/1
12050 PE 30JAN 155 7/1
11950 PE 9 Jan 45 8/1 Expired
Collected 490

In this confusion over US-Iran, we collected 490+280 points = 770 points.

Action 9/7

Squaring off one entire set
Sell 2 lots 12200CE 30Jan 145-115=30*2 pts gain. Taking advantage of high volatility
Buy 2 lots 12500CE 30Jan 45-30= 15*2 pts gain.
Cover 2 Nf 12255-12195=60*2 pts gain. Trend might change. Lets take of whats left.
---------
Total gained: 60+30+120=210 pts.
 
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jamit_05

Well-Known Member
6/1
Sold
12050 PE 30JAN 140
12000 PE 30JAN 150

Covered
2 lot NF 12115 --> Gain: 280 pts

7/1

Sold 2 lots 12200 30Jan 48
Bought 2 lots 12500 30Jan 12
difference 36*2 = 72 pts Gained.


Spreads

Covered Call Spread:
Buy CE 12200 16Jan 20 Lots @ 115 --
Sell CE 12500 30Jan 20 Lots @ 45 --
Squared off two pairs gained 70 pts -- Balance 18 Pairs

Short NF
20 Lots @ 12255 (Premium: 35 pts) -- Balance 18 Lots
Gain: 280 Pts


Sold
12050 PE 30JAN 140 6/1
12000 PE 30JAN 150 6/1
12050 PE 30JAN 155 7/1
11950 PE 9 Jan 45 8/1 Expired
Collected 490

In this confusion over US-Iran, we collected 70+490+280 points = 860 points.

Action 9/7

Squaring off one entire set
Sell 2 lots 12200CE 30Jan 145-115=30*2 pts gain. Taking advantage of high volatility
Buy 2 lots 12500CE 30Jan 45-30= 15*2 pts gain.
Cover 2 Nf 12255-12195=60*2 pts gain. Trend might change. Lets take of whats left.
---------
Total gained: 60+30+120=210 pts.

Complete gain: 860+120 = 980 points.

But...

with 16 NF in hand of 12255 and CMP 12255 --> breakeven

Covered Call Spread:
Buy CE 12200 16Jan 20 Lots @ 115 CMP 150 100 --> loss 50 points = 800 points loss.
Sell CE 12500 30Jan 20 Lots @ 45 CMP 40
------------------------------
Total Loss 800 points

Grand Total comes to a loss of 980-800 = 180 points of profit

Position squared off! at a notional profit of Rs.216000 :)
 
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