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

[amrutham]

Entered into below BN butterfly for 09th Aug expiry.

BN spot @ 27940

Buy BN 28100 CE 600 Qty @ 72
Sell BN 28200 CE 1200 Qty @ 45
Buy BN 28300 CE 600 Qty @ 26

Net debit = 72+26 -90 = 8*600 = around 5K

 

[amrutham]

Entered into below NIFTY position for AUG expiry

NF Spot @ 11400

Sell NF 11100 PE 450 Qty @ 42
Sell NF 11600 CE 450 Qty @ 46

Net credit = around 40K

Expecting NF to be in the range of 11150 - 11500 for this expiry. If it breaches any of these levels, will adjust the position.

 

[Vipul_84]

Entered into below BN position for 09th Aug expiry.

BN spot @ 27960

Buy BN 28000 PE 200 Qty @ 150
Sell BN 27900 PE 200 Qty @ 104
Sell BN 27500 PE 200 Qty @ 26

Net debit = 5K

Your views Please...

 

[amrutham]

Your views Please...

This position was taken expecting BN to trade around 28K level till expiry.Not expecting much downside, if any, beyond 27500.

 

[VJAY]

Entered into below BN position for 09th Aug expiry.

BN spot @ 27960

Buy BN 28000 PE 200 Qty @ 150
Sell BN 27900 PE 200 Qty @ 104
Sell BN 27500 PE 200 Qty @ 26

Net debit = 5K

Dear Amrutham,
Normally you take this type ratio trade on fridays ...Why you avoided it on friday ?any thoughts

 

[amrutham]

Dear Amrutham,
Normally you take this type ratio trade on fridays ...Why you avoided it on friday ?any thoughts

VIJAY,

Last week I was busy with other things and couldn't take this trade.

But for BN, these type are trades are more profitable when initiated as early as possible in the week.

 

[amrutham]

Entered into below BN butterfly for 09th Aug expiry.

BN spot @ 27940

Buy BN 28100 CE 600 Qty @ 72
Sell BN 28200 CE 1200 Qty @ 45
Buy BN 28300 CE 600 Qty @ 26

Net debit = 72+26 -90 = 8*600 = around 5K

Looks like 28K is ceiling for this series. Closed this position.

BN spot @ 27860

BN 28100 CE 600 Qty @ 38
BN 28200 CE 1200 Qty @ 20.5
BN 28300 CE 600 Qty @ 9.8

Net loss = around 500

 

[amrutham]

Entered into below BN butterfly for 09th Aug expiry.

BN spot @ 27830

Buy BN 27800 CE 600 Qty @ 158
Sell BN 27900 CE 1200 Qty @ 104
Buy BN 28000 CE 600 Qty @ 63

Net debit = 158+63 -208 = 13*600 = 7.8K

 

[sreperu]

Hi All
Even I heard that if we invest in any arbitrage funds, which they yield around 7 to 8 % /annum and it is tax free. We get 100% exposure for option selling with this type of investment.

 

[amrutham]

Hi All
Even I heard that if we invest in any arbitrage funds, which they yield around 7 to 8 % /annum and it is tax free. We get 100% exposure for option selling with this type of investment.

I think these are treated as equity funds.

As per clerartax:

These funds are treated as equity funds for the purpose of taxation. If you stay invested in them for a period of up to 1 year, you make short-term capital gains (STCG) which are taxable. STCG are taxed at the rate of 15%. If you stay invested in them for a period of more than 1 year, the gains will be treated as long-term capital gains (LTCG). LTCG in excess of Rs.1lac is taxed at the rate of 10% without the benefit of indexation.


Regarding exposure I am not sure. If anybody is using them, please confirm.