Premium Eating Strategy - BankNifty Weekly Options

mycall

Well-Known Member
I will definitely look into the aspects we discussed... I understood it clearly... but don't think will be able to implement for 2 major reasons... first I don't have the tools for delta assessment realtime... another issue is my non-avaibility during trading sessions...

but the points you explained will really help me spice up my current strategy... I am an avid researcher of how to trade in options safely... I have an able partner... much intelligent and matured mind than me... but his time is far less than mine...

I will keep you updated and come up with more issues for discussion in coming days...

Thanks again!
 

mycall

Well-Known Member
Ur welcome @mycall.... I don't find any traders on this forum to discuss about writing or any option strategies for that matter. So it's always good to catch up on people who are interested... Whenever you implement today's discussion, do tell how it went..!
Hi @SarangSood ... today I checked your method and It is working... good insight bro... I will update you when I am able to do some real trade...

I will start with the monthly though...

Again... big thanks to you bro... real stuff :up::up::up:
 

mycall

Well-Known Member
Hi @SarangSood... Today fortunately I had time to trade with your strategy... wanted to trade in main series... but due to spread had to trade current...

Due to RBI policy... I tracked lower delta and gone after .05-.06... at the end shifted 3 times and booked 12 pts.

Need rigorous practice to go for higher delta.

I had Ratio Spread at 26500PE which gave me good profit.

Currently holding Put Calendar at 26600PE and Ratio Spread at 26000PE (main series).

Thank you.
 

SarangSood

Well-Known Member
Hi @SarangSood... Today fortunately I had time to trade with your strategy... wanted to trade in main series... but due to spread had to trade current...

Due to RBI policy... I tracked lower delta and gone after .05-.06... at the end shifted 3 times and booked 12 pts.

Need rigorous practice to go for higher delta.

I had Ratio Spread at 26500PE which gave me good profit.

Currently holding Put Calendar at 26600PE and Ratio Spread at 26000PE (main series).

Thank you.
Really good to hear that your implementing it in your strategies @mycall. Today was a good day for me as well. Mostly RBI policies are like this only.

My strategy today was bnf short and delta neutral ATM put short (1 future against 2 Atm). It was giving consistent result during the day and bumper after the policy. Converted it into a Put spread to carry for tomorrow.

It would be wise if you trade in current series only because there will be slippage cost while shifting as there is less liquidity in the monthly series.
 

mycall

Well-Known Member
Really good to hear that your implementing it in your strategies @mycall. Today was a good day for me as well. Mostly RBI policies are like this only.

My strategy today was bnf short and delta neutral ATM put short (1 future against 2 Atm). It was giving consistent result during the day and bumper after the policy. Converted it into a Put spread to carry for tomorrow.

It would be wise if you trade in current series only because there will be slippage cost while shifting as there is less liquidity in the monthly series.
Hi!

Delta neutral combination future option... I used to do it earlier... but found that you must be somewhat sure about the market outcome... because if market moves opposite side faster... it needs hectic adjustments...

Yes... slippage cost is more in main... spread is more in main in strike other than 500 intervals... like 25000, 25500, 26000 etc... I generally take ratio in main with negligible debit or no debit... these positions are taken when I have clear market view or have unprotected position in current series... later on adjust these position to extract my minimum target profits.

Thank you.
 

SarangSood

Well-Known Member
Hi!

Delta neutral combination future option... I used to do it earlier... but found that you must be somewhat sure about the market outcome... because if market moves opposite side faster... it needs hectic adjustments...

Yes... slippage cost is more in main... spread is more in main in strike other than 500 intervals... like 25000, 25500, 26000 etc... I generally take ratio in main with negligible debit or no debit... these positions are taken when I have clear market view or have unprotected position in current series... later on adjust these position to extract my minimum target profits.

Thank you.
@mycall Actually i trade in bnf only when the premium or discount is more than 100 just to take that advantage though i will not carry it forward.

Extra hedging helps immensely on days like these. Morning required a lot of adjustments. Holding Put Spread for now in some profit, will check which strategy will work better.
 

mycall

Well-Known Member
Hi @SarangSood... do you have any idea of how much positive delta needed to hedge different expiry options... I have put calendar 13th and 27th... balancing won't work... sorry balancing always work but I must balance some positive delta due to the difference of expiry...

Do you have any experience... any ballpark figure... from my guesswork I am thinking of about .1 delta
 

SarangSood

Well-Known Member
Hi @SarangSood... do you have any idea of how much positive delta needed to hedge different expiry options... I have put calendar 13th and 27th... balancing won't work... sorry balancing always work but I must balance some positive delta due to the difference of expiry...

Do you have any experience... any ballpark figure... from my guesswork I am thinking of about .1 delta
@mycall What's the exact position and their respective delta?
 

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