Protective Put Advanced Version: Part 2

mohan.sic

Well-Known Member
#11
@ Mohan Sic

I already shows 9 months results of 2015

hence to see hw it works in long term, Dear friend, you know now what to do in strategy so pls try and show past 1 yr 2014 results
Sure we can see 2014 results but why not discuss about 2015 results before that as you already tested 2015.

Can you share some details on how those profits/loss numbers arrived in those months. Just want to understand the contribution of the 2 legs ( share of hedged position : naked position ) in those profits and losses.

thanks.
 

umeshmandal

Well-Known Member
#12
@ Mohan Sic

I already shows 9 months results of 2015

hence to see hw it works in long term, Dear friend, you know now what to do in strategy so pls try and show past 1 yr 2014 results
Very frankly the results shown are not very specific as to date of exit and rates at which exited. Its easy to see profits in the hind sight and not that easy while actually trading.
 

anuragmunjal

Well-Known Member
#13
posting past nine months' data.
nifty closing on expiry day:
29 jan 15 : 8952.35
26 feb 15 : 8683.85
26 mar15 : 8342.15
30 apr 15 : 8181.5
28 may15 :8319
25 jun15 : 8398
30 jul 15 :8421.8
27 aug 15 :7948.95
24 sep 15 :7868.5

assuming the call put parity.. (atm call price + put price cost ) is 350 Rs on first day , which is a conservative estimate... a person trading the opposite/reverse from what you are suggesting here would have made a lot of money.

regards

ps. sorry I did not take into account that you are booking profits in 100 points etc. , my mistake.. just showing the reverse scenario settlement to settlement
 

gkpc

Well-Known Member
#14
posting past nine months' data.
nifty closing on expiry day:
29 jan 15 : 8952.35
26 feb 15 : 8683.85
26 mar15 : 8342.15
30 apr 15 : 8181.5
28 may15 :8319
25 jun15 : 8398
30 jul 15 :8421.8
27 aug 15 :7948.95
24 sep 15 :7868.5

assuming the call put parity.. (atm call price + put price cost ) is 350 Rs on first day , which is a conservative estimate... a person trading the opposite/reverse from what you are suggesting here would have made a lot of money.

regards

ps. sorry I did not take into account that you are booking profits in 100 points etc. , my mistake.. just showing the reverse scenario settlement to settlement
He has also suggested to take opposite position after booking 100 points. Very difficult to analyse the historical tradse without having IEOD data for both Future and Options both.
 

mohan.sic

Well-Known Member
#15
He has also suggested to take opposite position after booking 100 points. Very difficult to analyse the historical tradse without having IEOD data for both Future and Options both.
His strategy has 2 legs.

1) buy fut and atm puts
2) buying atm calls or puts depending upon how first leg was closed

profit/loss for a month is sum of both legs.

He has given sum of both legs as profit or loss made in each month. Now let him give outcome of each leg seperately for every month and then we can get clarity..
 
#16
His strategy has 2 legs.

1) buy fut and atm puts
2) buying atm calls or puts depending upon how first leg was closed

profit/loss for a month is sum of both legs.

He has given sum of both legs as profit or loss made in each month. Now let him give outcome of each leg seperately for every month and then we can get clarity..
In my thread it clearly said that book profit on 100 points in first position and in second position book profit whenever call or put you buy become double. Its that simple
First leg profit will be always 100 points so any month it would be
100*25 ( Lot Size) = Rs. 2500/-
Second leg profit depends on Call or Put cost.
Suppose we buy Call and its cost is Rs. 100 then whenever it become double that is Rs. 200 up to expiry we close position hence,
second leg profit in this example is Rs. 100
100*25 = Rs. 2500/-

Total profit = 1st position + 2nd position = Rs. 5000/-
 

mohan.sic

Well-Known Member
#17
In my thread it clearly said that book profit on 100 points in first position and in second position book profit whenever call or put you buy become double. Its that simple
First leg profit will be always 100 points so any month it would be
100*25 ( Lot Size) = Rs. 2500/-
Second leg profit depends on Call or Put cost.
Suppose we buy Call and its cost is Rs. 100 then whenever it become double that is Rs. 200 up to expiry we close position hence,
second leg profit in this example is Rs. 100
100*25 = Rs. 2500/-

Total profit = 1st position + 2nd position = Rs. 5000/-
Come on man, we can understand such simple things.:)
Now why dont you give some colorful picture instead of repeating the same black n white strategy.

Jan: what was p/l on first leg and on second leg
feb: what was p/l on firsrt leg and on second leg
march:
-----:
september: what was p/l on firsrt leg and on second leg

Asking this just to understand ...


thanks/.
 

SaravananKS

Well-Known Member
#18
As per my little knowledge this Strategy is delta neutral Strategy which can be implemented when IV is low.

One can make good profit if any wild movement happens immediately after taking the position.

the main drawback of the systems when market stays in range for a long period

Any system which uses leverage must have stop loss point. so one has to define exit Strategy on this system ( that means when price is not moving as per expectation)

In Paper trading it is easy to point out profit. But defining entry and exit point is difficult. unless one has a tool to back test options Strategies

But an Experienced trader can adapt this system whenever favorable situation arises (for eg AUG this year) or IV is low

if IV is high then one can consider iron condor like delta neutral strategy.

but one thing I can assure no system will make money month on month
each Strategy will have it is own drawback and one should ready to face draw down periods before adapting any system :thumb:
 
#19
Well, with your behavior you showed in part one and the bluffing words you did over there, there is no interest to even help you in any way after this.

So stop posting your bullshit about your disappointment to not get any better ideas you presented until now by your self.

And this means: You are not able to show any option analyzing strategy picture, you are not able to show any chart which would mark any of your entry point or exit points you mention on any clear time frame with any orders you would like to have done, as you are a pure paper trader and think that all what you post here is the way your paper trades show. :rofl::rofl:

Good luck Mr. MT and kindly come up and show facts and not only words and hope it would like to be like your paper trades do show off on your doing.[/QUO
Well, as you are not even have been mentioned personally in any way in any post, but coming up here with your bla bla even the flow goes on with out any interruption until you started it with your stupid post again, let me tell you this:

You can trade options with out the Greeks.

So you seem to be on a level you not even seem to know that. So why don't you stay out of this thread and let it just move on as it is Mr. --------.

I am so happy that this guy last visited the forum in 2016. good riddance.
 

Similar threads