Regular Income From Markets. Risk Free. Takes no Time

[jamit_05]

Buy CE 11100 128
Buy PE 11000 110
Sell 10800 58

Net Debit: 180

Took loss of 45 points... and closed the trade.

 

[jamit_05]

Butterfly #1 Expiry: 21st Feb

BUY 11100 CE 66
Sell 10950 CE 132
Sell 10950 PE 141
BUY 10800 PE 87

132+141-66-87 = 120
Current Value 172+28-8-85=107

This is 13 points gain. Will book it, as price has touched the PE 10800 wing.

Butterfly #2 Expiry: 28th Feb

buy 11000 68
Sell 10850 105 142
buy 10700 58
Net: 121
Max Loss : 29 points
CMP: 96+141-42-80=115

Butterfly #3 Expiry: 28th Feb

buy 11000 42
sell 10800 121 + 118
buy 10600 52
Net 145.
Max loss 55 points

 

[pagalguy]

I like the long butterfly trade in current high volatility environment. It should give good returns when the market starts moving up and volatility drops. Thanks for the strategy!

 

[jamit_05]

I like the long butterfly trade in current high volatility environment. It should give good returns when the market starts moving up and volatility drops. Thanks for the strategy!

In case of Indices, it is good to short Butterflies, as sharp moves are less.

 

[pagalguy]

In case of Indices, it is good to short Butterflies, as sharp moves are less.

I agree. The strategy you mentioned above is called Long Butterfly.

 

[jamit_05]

Butterfly #1 Expiry: +13 points

Butterfly #2 Expiry: 28th Feb

buy 11000 68
Sell 10850 105 142
buy 10700 58
Net: 121
CMP: 53+223-21-139 = 116
Profit Booked: +5

Butterfly #3 Expiry: 28th Feb

buy 11000 42
sell 10800 121 + 118
buy 10600 52
Net 145.
Max loss 55 points
CMP: 101+134-32-60 = 143


The following butterfly has a high Max Loss... so doesnt make sense to take it.

Expiry: 28th Feb
buy 10800 69
sell 10650 140 + 117
buy 10500 69
Net 119
Max loss 81 pts

 

[jamit_05]

Butterfly #1 : +13 points
Butterfly #2 : +5
This spread did not profit because price took a downward momentum.

Butterfly #3 Expiry: 28th Feb

buy 11000 42
sell 10800 121 + 118
buy 10600 52
Net 145.
Max loss 55 points
CMP: 139

Butterfly #4 Expiry 28th March

Buy 10900 CE 141
Sell 10700 248+192 = 448
Buy 10500 PE 130

Net credit 177

 

[jamit_05]

Butterfly #1 : +13
Butterfly #2 : +5
Butterfly #3 : +20

Butterfly #4 Expiry 28th March

Buy 10900 CE 141
Sell 10700 248+192 = 448
Buy 10500 PE 130

Net credit 177
cmp 255+191-147-125 = 174

Butterfly #5 Expiry 28th March

Buy 10800 CE 151
Sell 10600 254 + 200
BUY 10400 PE 137
Net = 166

 

[jamit_05]

Butterfly #1 : +13 - 4 = 9
Butterfly #2 : +5 - 4 = 0
Butterfly #3 : +20 -4 = 16

Butterfly #4 Expiry 28th March

Buy 10900 CE 141
Sell 10700 248+192 = 448
Buy 10500 PE 130

Net credit 177
cmp 263 + 169 - 150-110=172

Butterfly #5 Expiry 28th March

Buy 10800 CE 151
Sell 10600 254 + 200
BUY 10400 PE 137
Net = 166
CMP 330+136-202-88=176
Because the move was fast. Max loss is 34 points.

 

[jamit_05]

Butterfly #1 : +13 - 4 = 9
Butterfly #2 : +5 - 4 = 0
Butterfly #3 : +20 -4 = 16

Butterfly #4 Expiry 28th March

Buy 10900 CE 141
Sell 10700 248+192 = 448
Buy 10500 PE 130

Added a bullish wing: BUY 28Feb 11000CE 9.20
Logic: We need a small bias. Simply working with plain vanilla butterflies is not yielding. If this move is wrong we lose 6 pts, else we make 17.

Net credit 177 - 10 = 167


Butterfly #5 Expiry 28th March

Buy 10800 CE 151
Sell 10600 254 + 200
BUY 10400 PE 137

Added a bullish wing: BUY 28Feb 11000CE 9.20

Net = 166 - 10 = 156

Butterfly #6 Expiry 28th March

Buy 11000 CE 106
Sell 10800 206+164
BUY 10600 PE 104
bullish wing: BUY 28Feb 11000CE 11

Net = 149 <this will decay>

Each option has a cost of 1 point for buy and sell. This is high, almost 1/3rd of profits.