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

[jamit_05]

Trade 1:
Short ATM PE 11600 18th APR 52
Buy PE 11500 25th APR 52

Also

Short ATM PE 11650 18th APR 54
Buy PE 11550 25th APR 52
(Used cheat-code here, option chain is screaming gap up


Trade 2:
Short PE 11600 30May; collect 300
Buy PE 11500 26Dec; pay 440
Buy CE 12000 25Apr; pay 27

 

[jamit_05]

20 lots NF Mar 10915 : Decay 1000
40 lots 10900 Apr PE 214 : Cost 8600 (cost 428 per set -> target 480)
Loss Carried Forward: 3000
---------------------------------
Total Target 13000

SELL NF 10972 @ 10934 - 10915 = 20
sell 2 lots PEs @ 11000 @ 175 = 350 (instead of 10900)
-----------
+410


SELL NF 11080 @ 11050-10915=+135
Sell 2 lots PEs @ 145 = 290
------
+425

SELL NF 11080 - 10915 = +165
sell 2 lots PEs @ 145 = +290
---------------------
+460

SELL NF 11020 - 10915 = +105
Sell NF 11160 - 10915 = +245
Sell NF 11220 - 10915 = +295
Sell NF 11315 - 10915 = +400
Sell NF 11315 - 10915 = +400
Sell NF 11365 - 10915 = +450
Sell NF 11430 - 10915 = +515
Sell NF 11515 - 10915 = +600
Sell 2 lots 11000 May 215 = +430
Sell NF 11555 - 10915 = +640
SELL 2 LOTS 11300 Apr 145 = +290
SELL 2 LOTS 11300 Apr 130 = +260
Sell NF 11575 - 10915 = +660

---------
sell 2 lots 11500 apr 176 = +350
sell 2 lots 11400 apr 145=+290
sell 2 lots 11400 apr 185 = +370
sell 2 lots 11400 apr 190 = +380
sell 2 lots 11400 apr 200 = +400

It was a great decision selling these 10 lots of PEs
---------
sell 2 lots 11500 apr 155 = + 310
sell 2 lots 11400 apr 155 = + 310
sell NF 11675 - 10915 = +760


Sell NF 11830 - 10915 = +925
Sell 2lots 11600 18Apr 68*2=136

Sell 2lots 11550 18Apr 62*2=124
Sell 2lots 11650 25Apr 87*2=194

 

[jamit_05]

Another simple high probability trade

Buy NF 11720 / Apr expiry
Buy PE 11700 25Apr Exp cost 130
Max loss 20+130=150

As soon as spot 11800 reached, that is after 150 pt move.... I will sell ATM CE at around 150, and maximize gain.

High RR trade.

Exit policy can be aggressive due to which this trade becomes interesting.

Buy NF 11720 / Apr expiry 11700=20 loss
Buy PE 11700 25Apr... 130-95=35 loss
55 loss so far.

 

[jamit_05]

For Option Spreads... this approach seems most logical..

Sell CEs where OI is high. 11700 CE 25th Apr 102
Buy 100 OTM ce as cover 11800 CE 25th Apr 55
Net Collected: 45

Worst case loss: 55
Best Case Gain: 45
Expected net time decay in a week is around 20 points.

Will do the same for PEs when price falls high OI on PE side.

 

[angira]

Jamitbhai,

I've installed option oracle.
For short weekly ATM ce-pe, which of option's property like Delta, Vega, or Theta, etc. have
to consider ?

 

[jamit_05]

20 lots NF Mar 10915 : Decay 1000
40 lots 10900 Apr PE 214 : Cost 8600 (cost 428 per set -> target 480)
Loss Carried Forward: 3000
---------------------------------
Total Target 13000

SELL NF 10972 @ 10934 - 10915 = 20
sell 2 lots PEs @ 11000 @ 175 = 350 (instead of 10900)
-----------
+410


SELL NF 11080 @ 11050-10915=+135
Sell 2 lots PEs @ 145 = 290
------
+425

SELL NF 11080 - 10915 = +165
sell 2 lots PEs @ 145 = +290
---------------------
+460

SELL NF 11020 - 10915 = +105
Sell NF 11160 - 10915 = +245
Sell NF 11220 - 10915 = +295
Sell NF 11315 - 10915 = +400
Sell NF 11315 - 10915 = +400
Sell NF 11365 - 10915 = +450
Sell NF 11430 - 10915 = +515
Sell NF 11515 - 10915 = +600
Sell 2 lots 11000 May 215 = +430
Sell NF 11555 - 10915 = +640
SELL 2 LOTS 11300 Apr 145 = +290
SELL 2 LOTS 11300 Apr 130 = +260
Sell NF 11575 - 10915 = +660

---------
sell 2 lots 11500 apr 176 = +350
sell 2 lots 11400 apr 145=+290
sell 2 lots 11400 apr 185 = +370
sell 2 lots 11400 apr 190 = +380
sell 2 lots 11400 apr 200 = +400

It was a great decision selling these 10 lots of PEs
---------
sell 2 lots 11500 apr 155 = + 310
sell 2 lots 11400 apr 155 = + 310
sell NF 11675 - 10915 = +760



Sell NF 11830 - 10915 = +925
Sell 2lots 11600 18Apr 68*2=136

Sell 2lots 11550 18Apr 62*2=124
Sell 2lots 11650 25Apr 87*2=194

Sell NF 11720 - 10915 = +800
Selling NF on updays... and PEs on down days.

 

[jamit_05]

................................................

 

[jamit_05]

20 lots NF Mar 10915 : Decay 1000
40 lots 10900 Apr PE 214 : Cost 8600 (cost 428 per set -> target 480)
Loss Carried Forward: 3000
---------------------------------
Total Target 13000

SELL NF 10972 @ 10934 - 10915 = 20
sell 2 lots PEs @ 11000 @ 175 = 350 (instead of 10900)
-----------
+410


SELL NF 11080 @ 11050-10915=+135
Sell 2 lots PEs @ 145 = 290
------
+425

SELL NF 11080 - 10915 = +165
sell 2 lots PEs @ 145 = +290
---------------------
+460

SELL NF 11020 - 10915 = +105
Sell NF 11160 - 10915 = +245
Sell NF 11220 - 10915 = +295
Sell NF 11315 - 10915 = +400
Sell NF 11315 - 10915 = +400
Sell NF 11365 - 10915 = +450
Sell NF 11430 - 10915 = +515
Sell NF 11515 - 10915 = +600
Sell 2 lots 11000 May 215 = +430
Sell NF 11555 - 10915 = +640
SELL 2 LOTS 11300 Apr 145 = +290
SELL 2 LOTS 11300 Apr 130 = +260
Sell NF 11575 - 10915 = +660

---------
sell 2 lots 11500 apr 176 = +350
sell 2 lots 11400 apr 145=+290
sell 2 lots 11400 apr 185 = +370
sell 2 lots 11400 apr 190 = +380
sell 2 lots 11400 apr 200 = +400

It was a great decision selling these 10 lots of PEs
---------
sell 2 lots 11500 apr 155 = + 310
sell 2 lots 11400 apr 155 = + 310
sell NF 11675 - 10915 = +760



Sell NF 11830 - 10915 = +925
Sell 2lots 11600 18Apr 68*2=136

Sell 2lots 11550 18Apr 62*2=124
Sell 2lots 11650 25Apr 87*2=194

Sell NF 11720 - 10915 = +800
Sell NF 11825- 10915 = +910
Sell NF 11850- 10915 = +935*3
==========================
Target Achieved... 15604 was the total collection.
Target was 15000
With 8 PEs still in hand, in case market comes down will sell them for more gains.

 

[jamit_05]

Trade 1:
Short ATM PE 11600 18th APR 52 ... 2... +50 ... squared off.
Buy PE 11500 25th APR 52 ... 10... -42 Still Holding

Now, only way I will make good gains, if price comes back down. Inspite of a 200 pt move, we didnt make much. Therefore, it appears, if I had purchased OTMs I would be better off.

A fresh Trade 3:

Buy 100 points OTM 11900 25th Apr at 42
at + 100: +48
at - 100: -26

RR is good and the trend is on our side.

 

[jamit_05]

Spread #1 150point Iron Butterfly
Buy 9th May 11900 CE @ 33 (1W decay:33-3=30)
Sell 9th May 11750 CE+PE @ 82+89 = 170 (1W decay:170-36-48=86)
Buy 9th May 11600 PE @ 41 (1W decay:41-11=30)
Delta: -13
Theta: 46

Spread #2 150point Iron Butterfly, but with cheaper wings.
Buy 2nd May 150-OTM 11900 CE @ 5
Sell 9th May ATM 11750 CE+PE @ 82+89 = 170 (1W decay:170-36-48=86)
Buy 2nd May 150-OTM 11600 PE @ 10
Delta: -27
Theta: 135

Spread #3 A Month long 150point Iron Butterfly
Buy 12000 27JUN19 284
Sell 11750 30MAY19 330+270 (High Theta, High Delta)
Buy 11500 27JUN19 237
Delta: -0.31
Theta: 325.63

It is clear that the Spread 2 is going to be volatile due its very high Delta. Spread 3 has a balanced delta, and a good theta. This fits in well with our intentions.