Option Writing - Derivatives - Indices

[SarangSood]

No Approx 11 AM Banknifty Spot = 30717

View attachment 35990
31900 PE = 324
31300 CE = 45
Total premium = Rs 369
Current Profit = 212 - 369 = Rs -157 HUGE LOSS !! as of now !!!

Today would not be the day to trade or paper trade in short strangle. To improve your option writing skill you should check out cal or put debit ratio spreads.

 

[Raj232]

Today would not be the day to trade or paper trade in short strangle. To improve your option writing skill you should check out cal or put debit ratio spreads.

Thanks @SarangSood will check how to implement ratio spreads.

 

[Raj232]

Approx 1 PM and Banknifty Spot @ 30740 :

31900 PE = 260
31300 CE = 46
Total premium = Rs 306
Current Profit = 212 - 306 = Rs -94 HUGE LOSS !! as of now still !!!
... just to highlight the dangers of this method.. without a properly hedged position !!!

 

[Raj232]

Now approx 3:00 PM and market is 30596

31900 PE = 357
31300 CE = 27
Total premium = Rs 384
Current Profit = 212 - 384 = Rs -172 HUGE LOSS !!
... just to highlight the dangers of this method.. without a properly hedged position !!!

 

[DanPSup]

Thanks @SarangSood will check how to implement ratio spreads.

As far as I remember: Smart-Trade loves to trade those "Ratio-Spreads" short bevore expiration. Maybe you ask him for more details.

 

[techbt]

Buy 30500 CE @ 175 x 2 Lots
Sell 30600 CE @ 110 x 4 Lots
Buy 30700 CE @ 57 x 2 Lots
Max Loss= 480@ Spot 30,500
Max Profit = 3520 @ Spot 30,600
Let's see how it works.

 

[RadhuK]

 

[mazher]

Hi Raj Bhai no posting from two days.

 

[techbt]

Buy 30500 CE @ 175 x 2 Lots
Sell 30600 CE @ 110 x 4 Lots
Buy 30700 CE @ 57 x 2 Lots
Max Loss= 480@ Spot 30,500
Max Profit = 3520 @ Spot 30,600
Let's see how it works.

+1264 @ EOD

 

[DanPSup]

Hi Techbt and hi Radhuk

Thanks TB for the idea and thanks RH for the chart.

@TB: Did you do this trade real or, as it seems to me, the idea was very good, even than on paper? If you did it on paper, then what would you think could be the flaws by doing so and not get the profit you show?