Nifty Options Vertical Spread Trading

ananths

Well-Known Member
Holding call debit spread 6200/6300 at cost 21

Only idea is market has support 6000+

Will exit spot close below 6000. Resistance 6100. Above that no problem for call spread.
Today exited 6300 call short leg at 14.50 (profit 6 points)
Sold 6100ce at 80.

Now I have converted this to credit spread 6100CE/6200CE

Sold 6100ce at 80. CMP 72 +8
Bot 6200ce at 41.5 CMP 33 -8.5
Sold 6300ce at 20.5 CMP 14.5 +6 (closed)

Will exit if nifty spot manages to close above 6100.
 

gmt900

Well-Known Member
Here an absolute simple chart only with trend channels. No words needed, as all what can be told is seen on the chart. The main idea is not to find the perfect spot for each of those spreads. You place them according to the channels. You even can play them at the support and resistance level of those channels. If you do so, then you will have iron condors placed over the range through leg in. You even can leg into each separate credit spread. It all depends upon your will and knowledge what you want to trade. No holy grail behind that way of trading. It is also your choice to use next months options or how ever you like to trade those credit spreads. If you have a broker which has an understanding for what you do, then he will understand that you trade a less risky way and he surely will come down with the margin requirements.


Thank you Somatung. That was very well explained.
 

ananths

Well-Known Member
Today exited 6300 call short leg at 14.50 (profit 6 points)
Sold 6100ce at 80.

Now I have converted this to credit spread 6100CE/6200CE

Sold 6100ce at 80. CMP 72 +8
Bot 6200ce at 41.5 CMP 33 -8.5
Sold 6300ce at 20.5 CMP 14.5 +6 (closed)

Will exit if nifty spot manages to close above 6100.
Exited today.
6100CE at 75 +5
6200CE at 34 -6

Net points gained 5.
 

ananths

Well-Known Member
Bot march 6100PE/6000PE at a cost of 26

6100@ 68
6000@ 42.8

Debit spread
This spread was in loss of 15 points...so done below adjustments

Converted this to a credit spread

Short 6000PE @ 20.8 closed +22
Long 6100PE @ 31 holding -37
Short 6200PE @ 59 holding +5

Short 6400CE @ 38 holding +4

Currently a loss of 6 points!

I should have adjusted this once 6200 crossed..but I was waiting for fall near to expiry.
 

ananths

Well-Known Member
This spread was in loss of 15 points...so done below adjustments

Converted this to a credit spread

Short 6000PE @ 20.8 closed +22
Long 6100PE @ 31 holding -37
Short 6200PE @ 59 holding +5

Short 6400CE @ 38 holding +4

Currently a loss of 6 points!

I should have adjusted this once 6200 crossed..but I was waiting for fall near to expiry.
Exited this spread yesterday. Could not update here.

Long 6100PE closed at 31.5. Loss -36.5
Short 6200PE closed at 59. No loss
Short 6400ce closed at 24.5 Profit 13.5
Shorted 6100PE at 31.5 and covered today at 22 profit 9.5

Net profit around 8 points.
 

pannet1

Well-Known Member
Hi,

Today NIFTY is at 8350

Consider I am making a bearish spread with the following CALL options expiring at 27-Aug-2015

BUY 8750 CALL at 9.80
SELL 8250 CALL at 180.60

What is the maximum loss I can get,
What is the maximum gain i get on expiry.
What is the break-even (

What will i lose if NIFTY close above 8750,
What will i gain if NIFTY close below 8250 on expiry

Attached is the underlying chart that will tell why I have this Bearish view
 
Last edited:

Similar threads