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[Vipul_84]

Entered into below BN position for 07th June expiry.

BN Spot @ 26950

Sell BN 27500 CE 200 Qty @45.5
Sell BN 26000 PE 200 Qty @44

Net Credit = around 18K

This position is safe in the BN range 26000 -27500 for the next week.

What's this? Strangle?

 

[Vipul_84]

Today is event day

 

[amrutham]

Made one more adjustment.

BN spot @ 26150

Buy BN 27000 CE 200 Qty @18
Sell BN 26500 CE 200 Qty @ 73

Buy BN 26000 PE 200 Qty @ 130
Sell BN 25800 PE 200 Qty @ 70

Debit= 1K

Net Credit = 28K

This position is safe in the BN range of 25800- 26500 for this week

Closed this position.

BN spot @ 26260

BN 26500 CE 200 Qty @ 70
BN 25800 PE 200 Qty @ 28

Net Profit = around 8K

 

[amrutham]

What's this? Strangle?

Yeah. Premiums were too high, hence wanted to take advantage of that. Now closed this position.

 

[amrutham]

Entered into below BN position for tomorrows expiry. Quantity is reduced due to RBI event today.

BN Spot @26280

Buy BN 26400 PE 200 Qty @ 232
Sell BN 26300 PE 400 Qty @178
Buy BN 26200 PE 200 Qty @ 128

Net Debit= 232+128 - 356 = 4*200 = 800

 

[Vipul_84]

Why you entered with PEs? What will happen if you use CEs?

 

[amrutham]

Why you entered with PEs? What will happen if you use CEs?

This trade was taken expecting BN to be in the range of 26000 - 26500 this week. With CEs the initial debit is higher, hence PEs were taken.

 

[Vipul_84]

So we compare both types and take based on lower initial debit. Most of the times PEs will win. Right?

 

[VJAY]

Entered into below BN position for tomorrows expiry. Quantity is reduced due to RBI event today.

BN Spot @26280

Buy BN 26400 PE 200 Qty @ 232
Sell BN 26300 PE 400 Qty @178
Buy BN 26200 PE 200 Qty @ 128

Net Debit= 232+128 - 356 = 4*200 = 800

Dear amrutham,
Todays BF position taken IMO ...any thought process behind it?or only due to less debit?

 

[amrutham]

So we compare both types and take based on lower initial debit. Most of the times PEs will win. Right?

Dear amrutham,
Todays BF position taken IMO ...any thought process behind it?or only due to less debit?

I am expecting a positive move in BN after the event, but not sure how big it is going to be.

If the position is taken in CEs and if the position moves into deep ITM, then I have to put extra effort closing the position.Hence taken position in PEs.

If BN moves slightly up after the event, then this position can give good profit.