Monthly Income with Options (and/or Futures and/or Equity)
- Thread starter pannet1
- Start date
- Tags monthly income plan option market
see here for my diagonal spread attempt.
in this case i was very much bullish. well what if the price fell and buy option went deep into loss immediately after order placement. well this where time will help us on the sold short term (read weekly) options. one could also sell additional next expiration week to keep with the delta of bought option.
this will mitigate the risk associated with absence of long term options like the ones you have in the U.S Markets.
its very easy to manage the sold legs. Sell the additional 2nd leg only when the 1st sold leg is in profit. then if the price moves against the 1st sold leg get out with a breakeven. so now you will be left with the 2nd (sold) leg and long leg.
also one may not leave overnight positions with 2 sold legs and 1 bought leg.
hope i am clear.
in this case i was very much bullish. well what if the price fell and buy option went deep into loss immediately after order placement. well this where time will help us on the sold short term (read weekly) options. one could also sell additional next expiration week to keep with the delta of bought option.
this will mitigate the risk associated with absence of long term options like the ones you have in the U.S Markets.
its very easy to manage the sold legs. Sell the additional 2nd leg only when the 1st sold leg is in profit. then if the price moves against the 1st sold leg get out with a breakeven. so now you will be left with the 2nd (sold) leg and long leg.
also one may not leave overnight positions with 2 sold legs and 1 bought leg.
hope i am clear.
Marketplace is a product of productive. It not generates any money and generates valuations to the products of companies. Perfect portfolio not generates any money but selling the value income can be possible. Short term high beta stocks alone generates the best monthly income with out any future and options .
finally finally good people. I have found a way.
I have found a strategy which is fixed like nail on the wall in all market condition. Yet, its fluid because you are adjusting as things develop.
Its nothing new. Its called calendar spread or diagonal spread. May be I can call it Poor man's Delta neutral.
Minimum capital required: 70K
Underlying: BANKNIFTY
Broker: Zerodha
Platform: Kite
Expected returns: 2% above p.m.
Additional income: Brokerage returned because you won Zerodha 60 day challenge :clap:
Good thing is if you know what you are doing. You can afford to be stupid. You can be without discipline. No need to be harsh on yourself. We make mistakes because price action or that stupid indicator tricked us.
Rules are little different
1) Never allow a SL to be triggered until your profit is more than Rs 500. You heard it right, we will book profit on SL triggers too.
2) Never close a Sold order in Profit if its not half of its premium. If closing it means that there is another Sold order we are holding in profit and its to be converted to NRML from MIS
3) Never increase the diagonal spread to be more than 100 points. We will break this rule when we have earned enough profit and we are in the second week onwards. In order to reduce risk we may buy a 3rd weekly option as well, if spread is beyond 100 points.
Please check my diary for more details.
I have found a strategy which is fixed like nail on the wall in all market condition. Yet, its fluid because you are adjusting as things develop.
Its nothing new. Its called calendar spread or diagonal spread. May be I can call it Poor man's Delta neutral.
Minimum capital required: 70K
Underlying: BANKNIFTY
Broker: Zerodha
Platform: Kite
Expected returns: 2% above p.m.
Additional income: Brokerage returned because you won Zerodha 60 day challenge :clap:
Good thing is if you know what you are doing. You can afford to be stupid. You can be without discipline. No need to be harsh on yourself. We make mistakes because price action or that stupid indicator tricked us.
Rules are little different
1) Never allow a SL to be triggered until your profit is more than Rs 500. You heard it right, we will book profit on SL triggers too.
2) Never close a Sold order in Profit if its not half of its premium. If closing it means that there is another Sold order we are holding in profit and its to be converted to NRML from MIS
3) Never increase the diagonal spread to be more than 100 points. We will break this rule when we have earned enough profit and we are in the second week onwards. In order to reduce risk we may buy a 3rd weekly option as well, if spread is beyond 100 points.
Please check my diary for more details.
As you know my books are getting better and better and finally after 6 years of struggle and after burning about 5 lakhs, i am becoming profitable. Though not necessary I was always looking for some means to calculate running greeks (delta, theta). I was even looking for brokers who could facilitate. As mentioned earlier Sharekhan has it. But my account size does not allow me to change to Sharekhan now.
So I thought if could scrap the option chain from NSE website with PHP and then calculate the greeks for my open positions. after burning 2 nights of midnight oil, it seems NSE is very keen to disallow scraping their data programmatically, atleast with PHP and my limited knowledge.
Luckily for me good people at trading tuitons had already done it.
Well, then its only for NIFTY and I needed for Bank Nifty. So I have modified it to fetch Bank Nifty data.
Enjoy!
So I thought if could scrap the option chain from NSE website with PHP and then calculate the greeks for my open positions. after burning 2 nights of midnight oil, it seems NSE is very keen to disallow scraping their data programmatically, atleast with PHP and my limited knowledge.
Luckily for me good people at trading tuitons had already done it.
Well, then its only for NIFTY and I needed for Bank Nifty. So I have modified it to fetch Bank Nifty data.
Enjoy!
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