Option Writing - Derivatives - Indices

[Raj232]

And here's the 3 PM update:

30500 CE -> Rs 80
30100 PE -> Rs 88
Total premium to be paid back : 80 + 88 = 168
Profit = 212 -168 = Rs 44 .. for the day..

 

[Raj232]

I'm sure that many would have bought and sold in the pattern below .. and made tons of money ...but I'll leave it for the time being:

 

[bpr]

I'm sure that many would have bought and sold in the pattern below .. and made tons of money ...but I'll leave it for the time being:

View attachment 35579

the sarcasm is strong with this one.

 

[SarangSood]

We had some mad moves, yes, went up and then down.. etc etc.. but that would not affect my calm..
[I'm on a bowl of hot soup from China Garden ;-) .. just joking ...]

View attachment 35576

30500 CE -> Rs 133.75
30100 PE -> Rs 56.15
Total premium to be paid back : 133.75 + 56.15 = 190
Profit = 212 -190 = Rs 22 .. upto now.. more updates later. ..

Hi Raj... It wouldn't be easy holding this strangle in a real trade as the risk reward is highly unfavorable because of the delta being out. It's only possible if you know for sure that market will not go up and if that level of intelligence has been achieved than why not sell naked calls?

Today was not an easy day for writing (specifically a strangle) because of the wild moves in both sides making the cost of adjustment very high. Not adjusting one's position is what ultimately blows a writer's account.

 

[Raj232]

Hi Raj... It wouldn't be easy holding this strangle in a real trade as the risk reward is highly unfavorable because of the delta being out. It's only possible if you know for sure that market will not go up and if that level of intelligence has been achieved than why not sell naked calls?

Today was not an easy day for writing (specifically a strangle) because of the wild moves in both sides making the cost of adjustment very high. Not adjusting one's position is what ultimately blows a writer's account.

What you say is absolutely true. However, all of the above are only paper trades and I'm looking for the best ways to do the adjustment.
Not only delta but also other greeks. Will post those as well as I get more inputs and live examples

 

[jyotixxx]

Hi Raj... It wouldn't be easy holding this strangle in a real trade as the risk reward is highly unfavorable because of the delta being out. It's only possible if you know for sure that market will not go up and if that level of intelligence has been achieved than why not sell naked calls?

Today was not an easy day for writing (specifically a strangle) because of the wild moves in both sides making the cost of adjustment very high. Not adjusting one's position is what ultimately blows a writer's account.

I agree him.
I was 1500 profit for 2 lots till 1145 am after adustments towards uppper side. When BN sank suddenly, adjustment could not also give me profit. Just that my loss was not huge.

 

[Raj232]

I agree him.
I was 1500 profit for 2 lots till 1145 am after adustments towards uppper side. When BN sank suddenly, adjustment could not also give me profit. Just that my loss was not huge.

Not sure how the position could go in loss. which strikes did you short ?

 

[jyotixxx]

Not sure how the position could go in loss. which strikes did you short ?

No, I wasn't going as per your method. It was the cost of adjuatments that caused loss to me

 

[Raj232]

No, I wasn't going as per your method. It was the cost of adjuatments that caused loss to me

Yes, cost of adjustment also has a cost. So basically the overall profitability comes down while doing adjustments. Moreover if the brokerage is per lot, then brokerage also plays a major factor. A good combination of all the factors will bring about the ideal situation.

 

[against_tides]

And here's the 3 PM update:
View attachment 35578

30500 CE -> Rs 80
30100 PE -> Rs 88
Total premium to be paid back : 80 + 88 = 168
Profit = 212 -168 = Rs 44 .. for the day..

Good going
are you shorting/writing it....??
Both PE and CE trades should have same trade time...so it should be market orders...even if paper trade...
and how to calculate the brokerage/taxes...it will help in painting a clearer picture...