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

[amrutham]

Entered in to below positions for BN 10th May expiry.

Trade 1:
Buy 25500 CE 200 Qty@193
Sell 25600 CE 200 Qty@145
Sell 25900 CE 200 Qty @50

Net credit = around 400

Trade 2:

Buy 25500 PE 200 Qty @148
Sell 25400 PE 200 Qty @110
Sell 25000 PE 200 Qty @ 35

Net debit = around 600

This can give good returns in 25000 - 25900 range. Beyond this range, its unlimited loss.

 

[amrutham]

Entered into below position for BN tomorrows expiry.

Buy BN 25500 PE 280 Qty@ 49
Sell BN 25400 PE 560 Qty @ 26
Buy BN 25300 PE 280 Qty @ 14

Net Debit = 49+14-52 = 11*2.8 = around 3K

Max Loss = 3K

Closed this position.

BN 25500 PE 280 Qty@ 7

Loss = around 1K

 

[superman]

Entered in to below positions for BN 10th May expiry.

Trade 1:
Buy 25500 CE 200 Qty@193
Sell 25600 CE 200 Qty@145
Sell 25900 CE 200 Qty @50

Net credit = around 400

Trade 2:

Buy 25500 PE 200 Qty @148
Sell 25400 PE 200 Qty @110
Sell 25000 PE 200 Qty @ 35

Net debit = around 600

This can give good returns in 25000 - 25900 range. Beyond this range, its unlimited loss.

I have observed from my personal experience only range bound positions with unlimited loss will give us good returns ,, If we like to cover our loss, we need to take hit on profitability to large extent. But 2008 always scares me while I take unlimited loss positions. Guess there is no free lunch in market

 

[amrutham]

I have observed from my personal experience only range bound positions with unlimited loss will give us good returns ,, If we like to cover our loss, we need to take hit on profitability to large extent. But 2008 always scares me while I take unlimited loss positions. Guess there is no free lunch in market

Most of the time they give good returns. But occasionally you will be hit with big loss. The position size should not be big enough to damage your account.

 

[Vipul_84]

Amrutham, I want to trade only one strategy. Trying to understand this as ST has very aptly recommended.
Which is this strategy? Any links to read more on this?
Thanks in advance.

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

 

[amrutham]

Amrutham, I want to trade only one strategy. Trying to understand this as ST has very aptly recommended.
Which is this strategy? Any links to read more on this?
Thanks in advance.

This strategy is called 'Long Butterfly'. In this case, you have small initial debit, which is your max loss.

https://www.optionseducation.org/strategies_advanced_concepts/strategies/long_call_butterfly.html

 

[jklaaki]

View attachment 24526 creen shot from one of my accounts is attached for your reference.

Impressive track record. Good job buddy! It would be great if you could share some strategies and knowledge with fellow traders here.

 

[Vipul_84]

Thanks Amrutham
Equal buy & sell position although the ratio is 1:2:1 and the outer strikes are equi-distance ( in this case 100 points away) and of same expiry, right?

 

[Vipul_84]

Few quick answers please:
Is it directional or direction neutral?
Also is it for trending or range markets?
How do you select these strike levels? Currently NF is at 10650 & BNF at 25650, which strikes will you suggest for both?

 

[amrutham]

Few quick answers please:
Is it directional or direction neutral?
Also is it for trending or range markets?
How do you select these strike levels? Currently NF is at 10650 & BNF at 25650, which strikes will you suggest for both?

Generally I use this for BN weekly strategy. Since NF is monthly expiry, its very difficult to predict the range and money is blocked for longer duration.

Based on OI levels for BN for this week, the following is a good strategy. This is assuming 25500 is good support and will not be broken on closing basis. This can give good returns in 25500 - 25900 range.

25500 CE - Long - X Qty
25700 CE - Short - 2X Qty
25900 CE - Long - X Qty

Thanks Amrutham
Equal buy & sell position although the ratio is 1:2:1 and the outer strikes are equi-distance ( in this case 100 points away) and of same expiry, right?

This can be 100 or 200 points for BN weekly expiry. But it should have same distance between 3 legs.