Trading for Living -- Successfully Completed one year as Full Time Trader

[Vasanth bala]

Still holding it 3000 Qty @180.

Wow gud

Hi amrutham..i am following your threads very keenly..gud works...can u explain me the strategies currenly you are following...do you sill doing butterfly spread on ecpiry day as mentioned in this thread before..

 

[SarangSood]

Though I have taken less than half of my usual trades and no overnight positions because of the uncertainty in the market but Put ratio spread in BNF has given decent return in Intraday in last two days (only if adjusted quickly).

 

[amrutham]

Wow gud

Hi amrutham..i am following your threads very keenly..gud works...can u explain me the strategies currenly you are following...do you sill doing butterfly spread on ecpiry day as mentioned in this thread before..

Yeah. I am following my regular strategies (ratio spread ,butterfly, short strangle ) along with butterfly on expiry day.

 

[SarangSood]

Yeah. I am following my regular strategies (ratio spread ,butterfly, short strangle ) along with butterfly on expiry day.

Do you trade in multiple butterflies which act as hedge to each other?

 

[amrutham]

Do you trade in multiple butterflies which act as hedge to each other?

No. Its single one. For BN, each strike is 200 points apart and for expiry day its 100 points apart.

Below is the expiry day trade taken today.

BN 28900 CE Long 400 Qty
BN 29000 CE Short 800 Qty
BN 29100 CE Long 400 Qty

Initial debit is around 16 points and will cover when the credit is more than 30 at any point in the day.

 

[SarangSood]

No. Its single one. For BN, each strike is 200 points apart and for expiry day its 100 points apart.

I also trade in 200 gap on expiry. But i always need to hedge my deep OTM butterfly with a nearer one. What do you do if market goes against?

 

[amrutham]

My plan is not do to anything until BN trades in my butterfly range ie 28900 - 29100 .

If it trades out side this range, then I take opposite trade to make the position at least break even.

For example if BN goes above 29100, then probably I will short 1-2 lots 29100 PE to cover the initial debit.

 

[SarangSood]

I generally trade in butterflies similarly as i trade in ratio spreads but only on expiry days and only in a leg that has more juice in it.

If done correctly both the butterflies give profit unlike the normal ratios where only one of the two instruments give profit. It is because deep otm expires and the one nearer to atm increases as the day progresses. The downfall which there is always in options is the cost of adjustment.

 

[SarangSood]

No. Its single one. For BN, each strike is 200 points apart and for expiry day its 100 points apart.

Below is the expiry day trade taken today.

BN 28900 CE Long 400 Qty
BN 29000 CE Short 800 Qty
BN 29100 CE Long 400 Qty

Initial debit is around 16 points and will cover when the credit is more than 30 at any point in the day.

My positions example would be:

BN 29000 CE Long 400 Qty
BN 29100 CE Short 800 Qty
BN 29200 CE Long 400 Qty

BN 29200 CE Short 1000 Qty
BN 29300 CE Long 2000 Qty
BN 29400 CE Short 1000 Qty.

It needs fast monitoring on the upside just like ratios. Downside I'm safe. Best if market is range bound. Also the risk reward becomes unfavorable after 2:30 pm.

 

[amrutham]

My positions example would be:

BN 29000 CE Long 400 Qty
BN 29100 CE Short 800 Qty
BN 29200 CE Long 400 Qty

BN 29200 CE Short 1000 Qty
BN 29300 CE Long 2000 Qty
BN 29400 CE Short 1000 Qty.

It needs fast monitoring on the upside just like ratios. Downside I'm safe. Best if market is range bound. Also the risk reward becomes unfavorable after 2:30 pm.

So in this case you will be profitable in BN range of 29000 - 29400.

I also close my BN positions before 2:30 PM on expiry day. After that often it becomes too violent.