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

The above strategy has a margin requirement of Rs 8.38 L in Zerodha.If we can make 11.5 K profit in next 2 days,it will come to 1.37 % .....best part is good RR and totally hedged strategy so even a crash scenario or sudden big upmove will limit the max loss to Rs 2.5 K.

Margin heavy strategy but fully safe.....if one does this strategy every week and considering some trades will go in a loss,still one can make a decent return on his capital in a year with total safety....

Smart_trade
 

iwillwin

Well-Known Member
Amrutham can you please share your journey...in terms of initial capital, learning phase, ups and downs...
It's very difficult to switch from a good paying job and enter in to a environment where your efforts and reward are not linearly related and has got many variables that limit your potential reward...


What prompted you to choose options strategy for minimising risk...was it large capital...

I am not an option trader, but want to learn ways in which one can lock in smaller returns with very limited risk...

Looking forward to hear from you
 

TraderGYO

Well-Known Member
The above strategy has a margin requirement of Rs 8.38 L in Zerodha.If we can make 11.5 K profit in next 2 days,it will come to 1.37 % .....best part is good RR and totally hedged strategy so even a crash scenario or sudden big upmove will limit the max loss to Rs 2.5 K.

Margin heavy strategy but fully safe.....if one does this strategy every week and considering some trades will go in a loss,still one can make a decent return on his capital in a year with total safety....

Smart_trade
I have never been able to understand this demand from the Exchange , if the strategy has limited risk potential in this case around 2.5k then why is there a capital requirement of 8.38L? At least, after orders are filled release the margins.
 
Last edited:

amrutham

Well-Known Member
Amrutham can you please share your journey...in terms of initial capital, learning phase, ups and downs...
It's very difficult to switch from a good paying job and enter in to a environment where your efforts and reward are not linearly related and has got many variables that limit your potential reward...


What prompted you to choose options strategy for minimising risk...was it large capital...

I am not an option trader, but want to learn ways in which one can lock in smaller returns with very limited risk...

Looking forward to hear from you

iwillwin,

I have documented my journey from Software Engineer to Full time trader in this thread. Please go through it.
 

amrutham

Well-Known Member
Below Adjustment made:

Sell 25500 CE 280 Qty @13
Buy 25400 CE 280 Qty @19

Debit = 1.7K

Total debit= 11.7K

Now max loss for this trade = 11.7K
Closed this position.

24900 CE 200 Qty @120
25200 CE 280 Qty @23
25400 CE 280 Qty @ 6

Net credit = 19.2K

Net Profit = 19.2 - 11.7 = 7.5K
 

amrutham

Well-Known Member
Made below adjustments.

Buy 1 lot NF 10500 PE @16
Sell 2 lots NF 10600 PE @ 41

credit = around 5K
Total credit = 14 + 5 = 19 K

Current open positions in this trade:

Short 1 lot NF 10500 CE
Short 2 lots NF 10600 PE

Will keep them open if NF is in 10500 - 10700 range.

Made below adjustment:

Sell 1 lot NF 10500 CE @92

Credit = around 7K

Total credit = 19 + 7 = 26 K

Current open positions in this trade:

Short 2 lots NF 10500 CE
Short 2 lots NF 10600 PE
 

amrutham

Well-Known Member
Entered into below position for BN Apr expiry.

Buy BN 25100 CE 280 Qty @ 78
Sell BN 25200 CE 560 Qty @ 49
Buy BN 25300 CE 280 Qty @ 29

Net debit = 107- 98 = 9*280 = 2.5K

Max loss = 2.5K

Sold 2 lots BN 25000 CE @ 50 as a hedge. Will close this position if BN goes above 25000.

Credit = 4K

Net credit = 1.5K
 

Similar threads