Option Selling during quarterly results

[sanju005ind]

for some butterfly and calendar spreads, i'm timing the quick moves. Small drops in NS are quick, so enter the short legs and 20-50pts later the buy legs.
the trade becomes slightly profitable for all spot prices and then if expiry is within the range u get the max out of it.

Doesnt happen all the time but on a large number of trades it worked better.

For weeky i have devised two timing methods.For next week options i initiate it on Tue/Wed and then close it on friday(depending) and then initiate another one on Friday and close it next Tue/Wed. Though most of the Trades has a Max potential of 5-6% I target 3-4%. That way you keep booking profits and overall on monthly you end up 7-10 %. At any time only 40-60% of entire capital is deployed. rest is for salvage strategy. salvage does not mean loss to profit. But minimising the loss.

 

[travi]

For weeky i have devised two timing methods.For next week options i initiate it on Tue/Wed and then close it on friday(depending) and then initiate another one on Friday and close it next Tue/Wed. Though most of the Trades has a Max potential of 5-6% I target 3-4%. That way you keep booking profits and overall on monthly you end up 7-10 %. At any time only 40-60% of entire capital is deployed. rest is for salvage strategy. salvage does not mean loss to profit. But minimising the loss.

yes, in this game half the capital has to be put aside for repair and adjustments. Especially if you have straddles, strangles.

Yest, i was to post but since strategy was take on Wed, i thought might do it live. Its a simple long calender spread.
If i'm sure i do 1 strike else 2. Entry midday around Wed and Exit Thu 3:20-25 max.
does 40pts odd, but can vary slightly with VIX levels.
Yest VIX cooled 2% so the far buy leg got few 2-4pts less

This works only on Wed to Thu but a simple expiry trade.

 

[sanju005ind]

The Central straddle was the 11300. Max profit was attainable if the close was nearer to 11300. But who is complaining.

 

[RadhuK]

The Central straddle was the 11300. Max profit was attainable if the close was nearer to 11300. But who is complaining.

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When did you initiate this trade

 

[sanju005ind]

When did you initiate this trade

Tuesday morning 9:25 am.

 

[siddhant4u]

Tuesday morning 9:25 am.

not bad for cool 1.6% profit in a week. If you consistently get 1% a week it will be nice returns to have.. Do you plan for black swan events or sudden jump of 200-400 points? I mean, adjust your puts/calls according to move or just wait for expiry? (i know there's long list to choose from)

 

[sanju005ind]

not bad for cool 1.6% profit in a week. If you consistently get 1% a week it will be nice returns to have.. Do you plan for black swan events or sudden jump of 200-400 points? I mean, adjust your puts/calls according to move or just wait for expiry? (i know there's long list to choose from)

In this system i earn about 2-3% of capital employed weekly. My target is 3-5% pf total capital a month. But i end up making about 8-10 % a month. I take two trades a week and don't look at charts whole day. It frees a lot of time. I don't worry about direction of the market. This technique works 70% of the time. Black swan comes True black swan will come once in a decade. Mini black swans will come once in a year. I don't mind taking a hit. Because i deploy only 50-60% of capital. The rest i keep to repair. Repair does not covert loss to profit. It minimizes the loss. Predicting direction is tough. But anticipating a range over the next two to three days is fairly easy. Which is more than enough for theta decay on weekly.

 

[RadhuK]

Only drawback is huge capital employed. Other wise be disciplined enough to take of profits at 1%, its cool. Ratio spreads will also give similar returns with much less capital and easy to manage also.

 

[landorra]

In this system i earn about 2-3% of capital employed weekly. My target is 3-5% pf total capital a month. But i end up making about 8-10 % a month. I take two trades a week and don't look at charts whole day. It frees a lot of time. I don't worry about direction of the market. This technique works 70% of the time. Black swan comes True black swan will come once in a decade. Mini black swans will come once in a year. I don't mind taking a hit. Because i deploy only 50-60% of capital. The rest i keep to repair. Repair does not covert loss to profit. It minimizes the loss. Predicting direction is tough. But anticipating a range over the next two to three days is fairly easy. Which is more than enough for theta decay on weekly.

Impressive results., but are you sure black swans are so rare?

 

[sanju005ind]

Impressive results., but are you sure black swans are so rare?

Depends on what does a BlackSwan means for individual. For me what happened in March 2020 is not balckswan. Since it was not something which caught me unawares. Sure the intensity and speed of the fall was great. But there were enough signs to stay away or be cautious.Demon in 2016 was balckswan. First thing in a balckswan is to keep calm and the wait for some time to observe and take a decision. Gujarat elections vote counting mornning was a another example. Surgical strike was another. A ship is built to sail the vast oceans what good is it if anchored in the harbor.