Monthly income

what % should be return on investment in monthly basis


  • Total voters
    66
#43
dear friends
i was talking about 10% monthly . but any ways i execute my first trade sold 4 lots nifty aug put 7600 @ 53.50 ,margin engage rs 22541/-(aprox) per lot. so game is start. And to take this position some logic i have.this strike & month has fulfill all my formula. so best of luck to me .

DATE --2 JUNE 2016
DAY -- 1
TRADE - SOLD NIFTY AUG PUT 7600 @ 53.5
LOTS -- 4 NO.S
MARGIN - 22541 /- (EACH TRADE)
 

tradedatrend

Well-Known Member
#45
1. Are you calculating only span margin??? because span+exposure margin for this trade would be approx 40K per lot

2. If market open gap down heavily, what is your risk management?
 
#46
1. Are you calculating only span margin??? because span+exposure margin for this trade would be approx 40K per lot

2. If market open gap down heavily, what is your risk management?
1. my broker provide me trade on span margin .only your ROI will be effect on full margin.
2 strike selection is my key factor. this strike on stress level .
 

comm4300

Well-Known Member
#50
dear friend
how much expecting gap down for tomorrow morning. when I take trade nifty was around 8200 my strike is 7600 gap around 6%.
Let's not just talk of tomorrow. Since you've sold AUG Puts, there's two complete months.

The markets have moved significantly up and have stayed here for a while.

VIX is down below 15.

6% down move may not happen right away, but can happen in a week/fortnight.

VIX will spike. Your option premium will spike. And you've sold two months out, so theta decay may not be as rapid as a 30DTE option.

What sort of adjustment plan do you have in place, if market corrects, VIX spikes and underlying threatens to near your strike and go below it?

thanks
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?