Option Writing - Derivatives - Indices

[against_tides]

+1264 @ EOD

and the result is??

 

[techbt]

and the result is??

I already given result.
@ EOD Index closed @ 30,716.15 and Options gave a profit of Rs1,264

 

[against_tides]

I already given result.
@ EOD Index closed @ 30,716.15 and Options gave a profit of Rs1,264

nice ..

 

[techbt]

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?

Hey better call me BT in short instead of TB

The trade need Spot to close as below

Max Loss= 480@ Spot <=30,500
Profit gradually increases to Max 3520 till spot 30,600
Max Profit = 3520 @ Spot = 30,600
Profit gradually diminishes to ZERO till spot 30,720
As per Flaws in this trade we will be in loss if Spot not stayed within our anticipated range.

 

[Raj232]

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

Yes, need to first know what ratio spreads are.. .. only heard about it..

 

[Raj232]

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.

@techbt : Nice strategy, but on what basis, took this ? is this ratio spread ?

 

[Raj232]

View attachment 36104

@RadhuK : chrt looks very colourful, but difficult to understand the buy and sell points.. or is this only for option writing ?
the more colourful the chart the more interesting it gets

 

[techbt]

This is Call Butterfly strategy.

 

[DanPSup]

@techbt : Nice strategy, but on what basis, took this ? is this ratio spread ?

Any "Ratio Spread" with only options has only two legs and has the danger to unlimited loss in the worst case if you do not know how to set a possible stop loss on the strategy. In his strategy with the "Call Butterfly" he cuts those risk by going long a third leg: (Buy 30700 CE @ 57 x 2 Lots).

What he not mentioned is that you can trade those "Call Butterfly" with different views and split it even into two "Call Ratio Spreads" to make any adjustment when you reached the max. profit on each of them. (Two side watching)

You can do this by calculating the strike levels, as he did, or you use any kind of option software or any option broker which offers to see "Option strategy trading analyzing pictures" in his plattform.

You also can use a pure "Option Put/Call Butterfly" as a repair strategie when any of your pure option "Call Spreads" or "Put Spreads" went wrong. But this is an other topic.

 

[DanPSup]

View attachment 36104

Looks like Omnitrader Software or what or which broker is it?