My Trading diary- Combination of options and future of single stock

pannet1

Well-Known Member
#21
Hello Pannet1.. Initially I took options position on the view that NTPC would be range bound. And I booked my profit in those options 3-4 days back and currently I have no position in options.

You are right that I should buy Sep future and short Oct future. Initially I tried to do the same but due to very less liquidity in OCT series I was not able to do it. By the way in next month I automatically will be in buy and will carry my Sept shorts to Nov shorts.
hi rao,

this looks like a hedged position but actually its not. one future p/l sets off the other .. leaving both the options without a hedge .. so if the underlying moves past any of your option strike within few days ... of your entry ... you may have to incur loss.

if the range between the option strike price is wide then the premium is not high ... as they say risk is proportional to the reward.
 
#22
hi rao,

this looks like a hedged position but actually its not. one future p/l sets off the other .. leaving both the options without a hedge .. so if the underlying moves past any of your option strike within few days ... of your entry ... you may have to incur loss.

if the range between the option strike price is wide then the premium is not high ... as they say risk is proportional to the reward.
Hello pannet1. Basically I am doing calendar future spread. I am of the opinion that NTPC is a range bound share (149.5-188 last year). I agree with you that I will have profit in one position and same amount of loss in other when the price move in one direction. But I am also adding position which get closed in profit. When the share corrects then I will have profit in my other losing position. Basically I want to place order on strategic points like support and resistance. I want to get profit from the wave like pattern of the movement. No matter where it moves my one position will be in profit.

I am still in learning phase. I will appreciate your further inputs. Thanks
 

pannet1

Well-Known Member
#23
Hello pannet1. Basically I am doing calendar future spread. I am of the opinion that NTPC is a range bound share (149.5-188 last year). I agree with you that I will have profit in one position and same amount of loss in other when the price move in one direction. But I am also adding position which get closed in profit. When the share corrects then I will have profit in my other losing position. Basically I want to place order on strategic points like support and resistance. I want to get profit from the wave like pattern of the movement. No matter where it moves my one position will be in profit.

I am still in learning phase. I will appreciate your further inputs. Thanks
Hello pannet1. Basically I am doing calendar future spread. I am of the opinion that NTPC is a range bound share (149.5-188 last year). I agree with you that I will have profit in one position and same amount of loss in other when the price move in one direction. But I am also adding position which get closed in profit. When the share corrects then I will have profit in my other losing position. Basically I want to place order on strategic points like support and resistance. I want to get profit from the wave like pattern of the movement. No matter where it moves my one position will be in profit.

I am still in learning phase. I will appreciate your further inputs. Thanks
consider entering your positions in a options analysis tool (like the free option action for example) and analyse your risks/reward. i think you are better off without the options part and still try to get the 1 point on the intraday basis while carrying the calendar spread.
then this becomes an arbitrage trade on the longer horizon and scalping on intraday basis.

just my few paise
 
#24
Sell order of OCT series future @173.5 also got executed. Today 2 points are earned. The current status of my open position is as follow :-


Capture.PNG



Effectively only 2 points are gained till date.
 
#25
Hello, everyone, I am back after almost 1 year. During this last year, I made a profit of about 2 lakh in October-November and it all went away in the next three months because of my inability to hedge and hope for reversing of my trade into profit. After that, I gave some time in studying Gann and other technical analysis concepts. I also attended two workshops. Finally I am back with few rules. Let's see till how many days I will be able to do trading with rules.

Currently, I have ICICI bank 1375 shares @423 and sold 420CE @13.25.- Covered call
Also I have made a 175PE-180CE strangle in DLF with a credit of 7.65.
 
#26
1. Covered the 420CE @ 7.5 with a profit of Rs 7906 and sold next months icici 430 call @11.25.

2. Bought back the DLF 175PE-180CE strangle on Friday @5.4 with a profit of Rs 5850.

3. On Friday, did a credit put calendar spread at 11700. Sold this week's 11700PE @40.1 and bought next week's 11700PE @68.95.

4. Currently I also have a strangle in Titan 1260PE-1320 CE with a credit of 37.45.
 

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