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

amrutham

Well-Known Member
#41
How much margin, did you pay for trade 1 and trade 2, individually.
At what rates you bought calls and puts
Max loss is calculated for both trades. Right
What will be the profit if BN expires, say at 24600
Not sure how to check individual margins in Zerodha. Total margin blocked is around 30 lakhs.

Yeah. Max loss is for both the trades combined. Looks like I have to book the loss.

If BN expires at 24600, then net profit is around 10k.
 

amrutham

Well-Known Member
#42
Expected the BN will hold 24500 once it crossed 24600 in the morning. But it went into tail spin.

Now looks like 24000 will also give away.
 
#43
Not sure how to check individual margins in Zerodha. Total margin blocked is around 30 lakhs.

Yeah. Max loss is for both the trades combined. Looks like I have to book the loss.

If BN expires at 24600, then net profit is around 10k.
So, you carrying on all this exercise,
by blocking a hefty sum, writing and buying a huge quantity of options, for a paltry sum of 10K, with a RR of 10K

I am now confused a bit.
 

amrutham

Well-Known Member
#45
View attachment 24634
I am getting a totally different P&L graph. What I am missing here?

All these positions were opened when BN was around 24600.

This is how P&L, looks like at different closing prices.

1) 24500 -- Calls expire worthless - Total Credit 200*200 = 40000 Total Profit = 40000-10000= 30000
2) 24600 -- Calls expire worthless - Total credit 200*100 = 20000 Total Profit = 20000-10000 = 10000
3) 24700 -- Puts expire worthless - Total credit 640*100 =64000 Total Profit = 64000 - 10000 = 54000

Hope this makes things clear.
 
#50
New positions taken for tomorrow's expiry.

Long 24700PE 200 Qty
Short 24500PE 600 Qty
Long 24400PE 400 Qty

Long 24600CE 640 Qty
Short 24700CE 1280 Qty
Long 24800CE 640 Qty


Total debit : Around 10000

Max Profit : If BN expires between 24500 and 24700
Max Loss : Initial debit value of 10K
Great going. What is the criteria that you use for selection of strike prices and quantity. Is it fixed or changes as per market condition?

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