Option Writing - Derivatives - Indices

DanPSup

Hedge Strategy Trader in Options and Futures
Amibroker

Yellow line (Submarine) is 21wma day wvap.
Simply put, if price above it, you short deep otm puts.
if price below it, you short deep otm calls

can ignore rest.

Lower panel shows ADX & DMI signals. One can use it for trend strength
Ok, I see it is Amibroker. All the rest about TA is personal choice. There are mechanical choices or what so ever, but nice to see your chart. In my opinion it is usefull to mix it up with other tools, no TA tools, to do any trading decisions. But new profes. software are doing this alreday. Mostly are from banks and not officialy available, as this is the advantage used to be a head of small traders, even not well organised fund traders, to win the game. So here our own work has to be done and I accept if people not want to show there personal success in it to public.
 
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Raj232

Well-Known Member
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.
Nice explanation!! Thanks @DanPSup
 
18 July Expiry
Sell 30500 PE @ 17.60 x4 Lots
Sell 31000 CE @ 18.00 x4 Lots
Upside Loss Above 31,035.60 Spot
Downside Loss Below 30,464.40 Spot
Max Profit = 2,848 Between 30,500 to 31,000 Spot
Profit drops from Max to Zero from 30,500 to 30,464.40 & 31,000 to 31,035.60
Entry based on 17 July EOD data, let's see tomorrow.
 
Actual entry may change depends on market opening, As i haven't taken position yesterday.I will enter today MIS orders only.
If market open flat, entry based on first 5 Min candle close (Market Orders)
 
Actual entry may change depends on market opening, As i haven't taken position yesterday.I will enter today MIS orders only.
If market open flat, entry based on first 5 Min candle close (Market Orders)
21.70 points in Profit at opening 5 min Low.
30500 PE Low=10.10 + 31000 CE Low=3.35 == 13.45
If YDay Entry 30500 PE= 17.60 + 31000 CE = 18.00 == 35.15

21.70*80=1,736 Profit! // Correction Profit was 21.70 points not 23
 
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18 July Expiry
Sell 30500 PE @ 17.60 x4 Lots
Sell 31000 CE @ 18.00 x4 Lots
Upside Loss Above 31,035.60 Spot
Downside Loss Below 30,464.40 Spot
Max Profit = 2,848 Between 30,500 to 31,000 Spot
Profit drops from Max to Zero from 30,500 to 30,464.40 & 31,000 to 31,035.60
Entry based on 17 July EOD data, let's see tomorrow.
Here is the outcome Please go through attached 5M charts.
Top pane BN Spot price.
Bottom Pane total price of both PE and CE.
Follow usual OHLC notation to read at each highlighted time period.
1. Yday Close (Entry 35.15)

2. @9.15 Today Open

3. @10:15 Low made 10.60

4. @13.30 Low made 9.05

5. @13.50 Spot DL so far

6. @14.35 Lowest made 7.30



7. @15.25 closing candle 57.45 vs Spot 30,454.30

Just compare my Spot VS these CE,PE combo price as mentioned , and how they moved in real market. Hope it may be useful for some one here.
 

DanPSup

Hedge Strategy Trader in Options and Futures
Here is the outcome Please go through attached 5M charts.
Top pane BN Spot price.
Bottom Pane total price of both PE and CE.
Follow usual OHLC notation to read at each highlighted time period.
1. Yday Close (Entry 35.15)

2. @9.15 Today Open

3. @10:15 Low made 10.60

4. @13.30 Low made 9.05

5. @13.50 Spot DL so far

6. @14.35 Lowest made 7.30



7. @15.25 closing candle 57.45 vs Spot 30,454.30

Just compare my Spot VS these CE,PE combo price as mentioned , and how they moved in real market. Hope it may be useful for some one here.
@techbt: Nicely shown and would appreciate if you could show more such analyzes after you showed one of your option strategy trades. Nice. :))

And here some infos for those who think the charts are not so well seen in the forum format: In Opera for example I can download and safe this whole page as PDF (I use Sumatra for PDF). If I then open the PDF I can Zoom it to the level I see all the details I want to see.
 

Raj232

Well-Known Member
Amibroker

Yellow line (Submarine) is 21wma day wvap.
Simply put, if price above it, you short deep otm puts.
if price below it, you short deep otm calls

can ignore rest.

Lower panel shows ADX & DMI signals. One can use it for trend strength
Thanks for explanation.. Are you actually implementing it in real trades ...??
 

Raj232

Well-Known Member
Here is the outcome Please go through attached 5M charts.
Top pane BN Spot price.
Bottom Pane total price of both PE and CE.
Follow usual OHLC notation to read at each highlighted time period.
1. Yday Close (Entry 35.15)

2. @9.15 Today Open

3. @10:15 Low made 10.60

4. @13.30 Low made 9.05

5. @13.50 Spot DL so far

6. @14.35 Lowest made 7.30


7. @15.25 closing candle 57.45 vs Spot 30,454.30

Just compare my Spot VS these CE,PE combo price as mentioned , and how they moved in real market. Hope it may be useful for some one here.
Thanks @techbt It seems to be a good strategy .. Is the pink /purple line a stop loss indicator ?
 

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