Options best strategy for a day or two with consistent profit

#1
Dear All

I used to read all the posts in this thread and have learnt a lot from this forum.
I used to day trade shares
Then I shifted to futures
But was in loss always
After lot of study I came to conclusions that real profit trading is in options
Options when a call shoots up the other side put comes down.
By using some maths we can target profit trades
Simple formula is that if not today tomorrow your trade will hit target
Option sellers always make more money.
My simple stragery is if market futures are trading at 14000
Sell call @ 13900 and sell @ put @ 13900
Buy call @ 14000 and buy put @ 14000
Sell call @ 14100 and sell put @ 14100

But the number of lots how much to sell and buy depends on pure maths

On Saturday 25/06/2020
Market futures for 29 Jul expiry 15880

My trades for options will be for strike price

15800
15900
15100
For expiry of 01 Jul weekly
Ltp for call and put of above Starke price on 25/06/20

Call @ 120 = 15800= put @ 72
Call @ 67 = 15900 = put @119
Call @ 31 = 16000= put @ 181

Trades will be
Sell call 10 [email protected] /sell 16 lots put @72

Buy call 16 lots @ 67 / buy 9 lots put @ 9

Sell call 12 lots @31 /sell 2 lots put @181

Margin required will be more
But the profitability of this method is more

Next trade will be at
Futures value 15800
Or
Futures value 16000
Of Jul 29 expiry

Thanks.
 
#2
Dear All

I used to read all the posts in this thread and have learnt a lot from this forum.
I used to day trade shares
Then I shifted to futures
But was in loss always
After lot of study I came to conclusions that real profit trading is in options
Options when a call shoots up the other side put comes down.
By using some maths we can target profit trades
Simple formula is that if not today tomorrow your trade will hit target
Option sellers always make more money.
My simple stragery is if market futures are trading at 14000
Sell call @ 13900 and sell @ put @ 13900
Buy call @ 14000 and buy put @ 14000
Sell call @ 14100 and sell put @ 14100

But the number of lots how much to sell and buy depends on pure maths

On Saturday 25/06/2020
Market futures for 29 Jul expiry 15880

My trades for options will be for strike price

15800
15900
15100
For expiry of 01 Jul weekly
Ltp for call and put of above Starke price on 25/06/20

Call @ 120 = 15800= put @ 72
Call @ 67 = 15900 = put @119
Call @ 31 = 16000= put @ 181

Trades will be
Sell call 10 [email protected] /sell 16 lots put @72

Buy call 16 lots @ 67 / buy 9 lots put @ 9

Sell call 12 lots @31 /sell 2 lots put @181

Margin required will be more
But the profitability of this method is more

Next trade will be at
Futures value 15800
Or
Futures value 16000
Of Jul 29 expiry

Thanks.
My free android app is created to help nifty and bank nifty option traders. This app is a combination of strategy builder and strategy generator. Strategy generator spots all the profitable low risk and high reward strategies based on your market view with delayed data. With strategy builder, you can enter your strategy in the app and it will calculate the payoff graph, break even, max profit and max loss. I would suggest you to give it a try

App link: https://play.google.com/store/apps/details?id=com.anand.strategybuilder

Disclaimer: Data shown in the app can be delayed up (max 20 mins) since I am using the free plan with my data vendor
 
#3
My free android app is created to help nifty and bank nifty option traders. This app is a combination of strategy builder and strategy generator. Strategy generator spots all the profitable low risk and high reward strategies based on your market view with delayed data. With strategy builder, you can enter your strategy in the app and it will calculate the payoff graph, break even, max profit and max loss. I would suggest you to give it a try

App link: https://play.google.com/store/apps/details?id=com.anand.strategybuilder

Disclaimer: Data shown in the app can be delayed up (max 20 mins) since I am using the free plan with my data vendor
why not make a desktop version application instead of android because most of the fuulltime traders using desktop/laptop mobile only watching the ltp price when outof pc..
ifyou make windows app then you can minimize delayed data or fully real time data feed is possible like DDE server/excelfeed & etc

consider it..
Happy trading
 
#4
Sell call 10 [email protected] /sell 16 lots put @72
Buy call 16 lots @ 67 / buy 9 lots put @ 119
Sell call 12 lots @31 /sell 2 lots put @181
What happens if NIFTY moves up or down by 3% ? (500-600 points) ? My analysis showed the strategy will end up losing money.


P.S : I have corrected the 15900 buy 9 lots price to be 119 (there was a typo of 9).
 
#5
This is how the profit curve looks.

In your example there is good profit potential if Nifty stays between 15650 and 15875, or between 15925 and 16075.
Considering your starting price of 15880, the strategy will make money if Nifty does not fall by more than 1.5%, or does not rise by more than 1.25%.

1626099522708.png
 

Attachments

#6
The option strategy breakeven is 15640, below which the strategy starts losing money rapidly. The NIFTY is currently at 15600, the strategy is already in a loss.
If NIFTY falls another 1% from here (to 15,440) the strategy ends of losing around Rs 1.35 lacs, and 2% down move from here the loss is Rs 2.40 lacs.

This is the hidden danger of options, trying to earn small consistent profits and one trade takes away 10x the earned profits.
 

Silentshadow

Well-Known Member
#7
Agree with @Brighton . Only way is to set a stoploss and then let the trade run if at all. Moment you see that prescribed loss immediately square of the position if you are aiming at intraday. But you have to be in front of the system all the time considering this is a multi-leg straddle and stops cannot be defined on the system considering price variation of legs taken. If our broker goes down then we may be in hell of a pain as well
 

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