Premium Eating Strategy - BankNifty Weekly Options

[mycall]

All option writing experts,

I have a question.

When you’ve wrote a call/put and the stock/ nifty/ bn is exactly moving towards it causing pain, what is the strategy to keep the show going? Should I book loss on that and write the next strike? Or wait until we near the expiry to see if there could be a retracement? TIA.


Cheers
AK

Hi,

In my second post I wrote that I use 2 option strategies on BNF options depending upon market condition.

One of those is a Short Strangle and other is Credit Spread.

Short Strangle (delta neutral)... which I generally take around 800-900-1000 (valuing 15-20) from spot on Thursday. Exit policy is either when my profit target is reached or spot reaches 100pts near the short strike... Management policy is shifting the winning strike maintaining the original distance... This strategy can give hefty returns but overstepping the management steps can get you in a real soup... specially novice traders in serious trouble.... believe me once out of greed I haven't exited the position and got busted.

Since then I shifted to Credit Spread.

If you are interested I will post both the strategies here so that it helps my friends and fellow traders here. I and one of my close friends are trading in options since last 7-8 years and together worked on several strategies. From that a few are giving us returns. One I have already described in my previous post.

We are currently researching on management strategies for stressed spread positions.

I believe that knowledge has to be shared and I am a big believer of free flow of information. Once we all join hands we can survive together.

 

[mazher]

HI mycall thanks for sharing the strategy please post the strategy it will help immensily to the traders here thanks in advance.

 

[mycall]

I took Main Short and Current Series buy on 6th July Friday morning

Shorted main series 26500 PE+CE @ credit points 664
Bought current series 26000PE and 27100CE @ debit points 42

Friday 3.28 enhanced my positive delta by buying current series 25900PE and 27000CE @ debit points 35.3... I was expecting either gap up or down or first 15min candle of about 100-150pts at least

Today 9.30 I exited the positive delta position @ 40.6... taking a profit of 5 pts

At 3.28 I exited my original position

Main Series shorts @ 626 credit points... taking a profit of 38 pts
Current Series buys @ 26 debit points... taking a loss of 16 pts

Cumulative profit of total trade 27pts... meets my weekly target

Will see if I can find any opportunity of applying other strategies during next three remaining days

 

[anildnr]

Hi,

In my second post I wrote that I use 2 option strategies on BNF options depending upon market condition.

One of those is a Short Strangle and other is Credit Spread.

Short Strangle (delta neutral)... which I generally take around 800-900-1000 (valuing 15-20) from spot on Thursday. Exit policy is either when my profit target is reached or spot reaches 100pts near the short strike... Management policy is shifting the winning strike maintaining the original distance... This strategy can give hefty returns but overstepping the management steps can get you in a real soup... specially novice traders in serious trouble.... believe me once out of greed I haven't exited the position and got busted.

Since then I shifted to Credit Spread.

If you are interested I will post both the strategies here so that it helps my friends and fellow traders here. I and one of my close friends are trading in options since last 7-8 years and together worked on several strategies. From that a few are giving us returns. One I have already described in my previous post.

We are currently researching on management strategies for stressed spread positions.

I believe that knowledge has to be shared and I am a big believer of free flow of information. Once we all join hands we can survive together.

Hi mycall..yes post your strategies that would help all of us

 

[govindheg]

I took Main Short and Current Series buy on 6th July Friday morning

Shorted main series 26500 PE+CE @ credit points 664
Bought current series 26000PE and 27100CE @ debit points 42

Friday 3.28 enhanced my positive delta by buying current series 25900PE and 27000CE @ debit points 35.3... I was expecting either gap up or down or first 15min candle of about 100-150pts at least

Today 9.30 I exited the positive delta position @ 40.6... taking a profit of 5 pts

At 3.28 I exited my original position

Main Series shorts @ 626 credit points... taking a profit of 38 pts
Current Series buys @ 26 debit points... taking a loss of 16 pts

Cumulative profit of total trade 27pts... meets my weekly target

Will see if I can find any opportunity of applying other strategies during next three remaining days

Very good. Thanks for sharing your trades.
Regards

 

[VJAY]

I took Main Short and Current Series buy on 6th July Friday morning

Shorted main series 26500 PE+CE @ credit points 664
Bought current series 26000PE and 27100CE @ debit points 42

Friday 3.28 enhanced my positive delta by buying current series 25900PE and 27000CE @ debit points 35.3... I was expecting either gap up or down or first 15min candle of about 100-150pts at least

Today 9.30 I exited the positive delta position @ 40.6... taking a profit of 5 pts

At 3.28 I exited my original position

Main Series shorts @ 626 credit points... taking a profit of 38 pts
Current Series buys @ 26 debit points... taking a loss of 16 pts

Cumulative profit of total trade 27pts... meets my weekly target

Will see if I can find any opportunity of applying other strategies during next three remaining days

Dear mycall,
Please explain about delta enhance ...and any adjustments done through delta when near EOD

 

[Rajeevji]

Hi MyCall,

Are there any websites at which I can paper trade?

 

[VJAY]

Hi MyCall,

Are there any websites at which I can paper trade?

http://optionstracker.net

 

[mycall]

Dear mycall,
Please explain about delta enhance ...and any adjustments done through delta when near EOD

about delta enhancement... I generally do this in weekends and every time I have some hunch or some events happening during off hours (weekdays)... because BN is a very sensitive item and it gives 100-200-300 pts move within first 15mins... in such cases having some extra deltas give greater security and maneuverability to the position... if there is no major movement those extra options will not loose much... exit after 9.30

Time of taking this position is between 3.20-3.25. There is a reason for this particular timing. Friends... can you guess? I am not going to give it easily. This is an important bit of information for all option traders... specially who want to buy options.

 

[VJAY]

about delta enhancement... I generally do this in weekends and every time I have some hunch or some events happening during off hours (weekdays)... because BN is a very sensitive item and it gives 100-200-300 pts move within first 15mins... in such cases having some extra deltas give greater security and maneuverability to the position... if there is no major movement those extra options will not loose much... exit after 9.30

Time of taking this position is between 3.20-3.25. There is a reason for this particular timing. Friends... can you guess? I am not going to give it easily. This is an important bit of information for all option traders... specially who want to buy options.

Thanks my call...
I don't know what exact reason But I observed options rates are in tight bid/ask rates in these timings may be due to auto square off mis positions....