Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strategy)

#21
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

The trade as it stands currently. The grey row is the option that I closed , rest all legs are open. Notice the new PE addition as a hedge for the NF leg.

Strike Instrument Date Trade Quantity Buy/Sell price premium received CMP (NF) CMP Closing Value P&L
8600 CE 29/08/2016 Sep sell 75 131 9825 8843 -275 -20625 -10800
8600 PE 29/08/2016 Sep sell 75 110 8250 8843 38.25 2868.75 5381.25
8700 CE 29/08/2016 Sep buy 300 87.5 0 8843 196.6 26250 32730
8600 NF 29/08/2016 Sep buy 75 8610 0 8843 8843 645750 17475
8500 PE 02/08/2016 Sep buy 300 28.5 0 8843 25.5 8550 -900
53711.25
Margin used 125500 M2M 42.80%
 
#22
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

Sir straddle itself is a hedged position then what does that nifty leg do

Sent from my Lenovo A2010-a using Tapatalk
 
#23
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

Sir straddle itself is a hedged position then what does that nifty leg do

Sent from my Lenovo A2010-a using Tapatalk
Well, yes a straddle is in itself a hedge, until the boundary conditions are not violated.

Now, isn't our aim to make a profit and not just end up at breakeven or say in some tiny profit :) - That is why you buy the NF leg to cover the losing leg.

See - it is the way you want to take advantage of the straddle - I also trade options and NF. That is why you will see a profit of 40%.

But even without the option, you can aim to make 15-18% if you just cover the straddle losing leg wihta NF.
 
#25
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

So u mean when u see a loosing leg in ur straddle u take nifty on that side ...can u tell me a example

Sent from my Lenovo A2010-a using Tapatalk
Look at the current trade - I've taken a long at 8600 since after writing the straddle at 8585, I had also bought NF the moment market was trading above 8590. I'm still holding it and it is in profit after covering the losing leg (the CE that was written)
 

Karanm

Active Member
#26
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

Can you please provide detailed strategy to earn 6% to 8% net per month in which daily option trading strategy is not involved & maximum you have to do shifting in strike price twice in a trade.

Regards
karanm
 
#27
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

Look at the current trade - I've taken a long at 8600 since after writing the straddle at 8585, I had also bought NF the moment market was trading above 8590. I'm still holding it and it is in profit after covering the losing leg (the CE that was written)
Sir can u suggest some new intraday directional strategy In options

Sent from my Lenovo A2010-a using Tapatalk
 

Karanm

Active Member
#28
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

the trade as it stands currently. The grey row is the option that i closed , rest all legs are open. Notice the new pe addition as a hedge for the nf leg.

Strike instrument date trade quantity buy/sell price premium received cmp (nf) cmp closing value p&l
8600 ce 29/08/2016 sep sell 75 131 9825 8843 -275 -20625 -10800
8600 pe 29/08/2016 sep sell 75 110 8250 8843 38.25 2868.75 5381.25
8700 ce 29/08/2016 sep buy 300 87.5 0 8843 196.6 26250 32730
8600 nf 29/08/2016 sep buy 75 8610 0 8843 8843 645750 17475
8500 pe 02/08/2016 sep buy 300 28.5 0 8843 25.5 8550 -900
53711.25
margin used 125500 m2m 42.80%
sir, you have never bought 300 qty. 8700 ce on 29/8/2016 as mentioned in the above performance sheet that now you are getting profit of more than 32,000/- more over on 1/9/2016 time 12.17 pm (mail 17) you have mentioned that you have exited the call & now now you are holding nifty future leg only, kindly clarify the above performance sheet.

Regards
karanm
 

Karanm

Active Member
#29
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

the trade as it stands currently. The grey row is the option that i closed , rest all legs are open. Notice the new pe addition as a hedge for the nf leg.

Strike instrument date trade quantity buy/sell price premium received cmp (nf) cmp closing value p&l
8600 ce 29/08/2016 sep sell 75 131 9825 8843 -275 -20625 -10800
8600 pe 29/08/2016 sep sell 75 110 8250 8843 38.25 2868.75 5381.25
8700 ce 29/08/2016 sep buy 300 87.5 0 8843 196.6 26250 32730
8600 nf 29/08/2016 sep buy 75 8610 0 8843 8843 645750 17475
8500 pe 02/08/2016 sep buy 300 28.5 0 8843 25.5 8550 -900
53711.25
margin used 125500 m2m 42.80%
sir, your profit of 42% is purely due to 300 qty 8700 call bought @ 87.5, now trading @196.6, net profit 32,730/- & nifty future one lot bought @8610, now trading @8843, profit of 233 x 75 = 17,475/-

in your performace sheet you have shown profit of 43,886 – 900 = 42,986/- rs. 900/- has been deducted from the net profit as you had bought 8500 pe 300 qty on 2/9/2016 (mentioned bought on 2/8/2016 as mistake)

sir, would request you to analyize your trade & net profit or loss in case nifty future would have moved down by 233 points and was trading @8377 when you had posted the performance sheet.

Sir, do you really feel this is a hedged trade ?

Regards
karanm
 
#30
Re: Modified Strategy to earn 15%-20% a month (Strategy inspired by Linkon7's strateg

sir, your profit of 42% is purely due to 300 qty 8700 call bought @ 87.5, now trading @196.6, net profit 32,730/- & nifty future one lot bought @8610, now trading @8843, profit of 233 x 75 = 17,475/-

in your performace sheet you have shown profit of 43,886 – 900 = 42,986/- rs. 900/- has been deducted from the net profit as you had bought 8500 pe 300 qty on 2/9/2016 (mentioned bought on 2/8/2016 as mistake)

sir, would request you to analyize your trade & net profit or loss in case nifty future would have moved down by 233 points and was trading @8377 when you had posted the performance sheet.

Sir, do you really feel this is a hedged trade ?

Regards
karanm
If nifty had fallen below 8580, then it would be a reverse trade with NF short and other intra-day trades and over-night trades being PE not CE.

Sorry, the dates got jumbled up as I downloaded from my terminal and copied that data into an excel.

All prices, figures are direct downloads from my zerodha terminal :)

As for the rules of this strategy please read up on Linkon7's post here

http://www.traderji.com/futures/41903-target-500-nifty-points-per-month.html
 

Similar threads