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

[amrutham]

Hi Amrutham,
do you use any other strategies other than butterfly and ratio spreads? Please share your experience..

Usually one NF short strangle position for a series.

From Tue-Thu, I use strangles on BN weekly options. But these are strictly intraday.

For example, today morning, I have shorted 28000 PE and 28500 CE, each 200 Qty. Will close this position before market end irrespective of P/L.

 

[amrutham]

Closed PNB 70 PE @ 0.1

Moved TataMotors July 270 [email protected] to TataMotors Aug 250 [email protected]

Net debit = around 500

Now closed this position.

Bought back TataMotors Aug 250 PE @ 0.8

 

[sreperu]

Usually one NF short strangle position for a series.

From Tue-Thu, I use strangles on BN weekly options. But these are strictly intraday.

For example, today morning, I have shorted 28000 PE and 28500 CE, each 200 Qty. Will close this position before market end irrespective of P/L.

You will adjust the positions accordingly if it goes ITM right...

 

[amrutham]

You will adjust the positions accordingly if it goes ITM right...

Thats right. These intraday positions are adjusted very actively. I don't wait until it becomes ITM. After the position is taken, for every 100 point move, the position is adjusted.

 

[amrutham]

Planning to take below stock option trade tomorrow for Sept expiry.

TataMotors Friday closing price @255

Sell TataMotors 270 PE 3000 Qty @ 19.5
Buy TataMotos 300 PE 1500 Qty @ 42.5

Net Debit = 42.5 - 19.5-19.5 = 3.5*1500 = 5250

Margin blocked in Zerodha = around 90K

Plan of Action :

If it closes above 300 by expiry, then this can be made atleast a break-even trade by adjusting 270 PE upwards towards the end of the series.

Below 240, this position will start giving loss, and planning to acquire the stock with cost price around 240.

If it closes between 240 and 300, this position will give profit with max profit, 40K @ 270.

 

[sanju005ind]

Planning to take below stock option trade tomorrow for Sept expiry.

TataMotors Friday closing price @255

Sell TataMotors 270 PE 3000 Qty @ 19.5
Buy TataMotos 300 PE 1500 Qty @ 42.5

Net Debit = 42.5 - 19.5-19.5 = 3.5*1500 = 5250

Margin blocked in Zerodha = around 90K

Plan of Action :

If it closes above 300 by expiry, then this can be made atleast a break-even trade by adjusting 270 PE upwards towards the end of the series.

Below 240, this position will start giving loss, and planning to acquire the stock with cost price around 240.

If it closes between 240 and 300, this position will give profit with max profit, 40K @ 270.

Nice one. It is in no such hurry to cross 300 neither are they allowing it to fall below 250.

 

[deepv]

Planning to take below stock option trade tomorrow for Sept expiry.

TataMotors Friday closing price @255

Sell TataMotors 270 PE 3000 Qty @ 19.5
Buy TataMotos 300 PE 1500 Qty @ 42.5

Net Debit = 42.5 - 19.5-19.5 = 3.5*1500 = 5250
...

Hi Amrutham,
That looks like a nice spread.
But was wondering why would you choose 300PE on upside, was it due to 300 being strong resistance?
Help me with your thought process.

How about going with 290PE at around 35, it would give fully positive result on upside and while longer range on down side till about 235?

Apologies if you have been explaining this earlier in the thread, just started following it recently!

 

[senthilan]

Hi Everyone,

I am following this forum for last 4 years and this is my first post.

I was a software engineer by profession and worked in the filed for 12 years. Finally I quit my job in Jan 2017 and started full time trading.

I am into trading for last 9 years, mostly options trading.
In the beginning of my trading career I used to buy options mostly. Some times I win and some times i lose.

After accumulating enough capital from my job earnings, I quit my job last year and started trading.

Since Jan 2017,, I am able to generate consistent income by writing options. In the last FY 2017-2018, I am able to generate profit more than my last annual salary.

Its mostly Nifty current month options and BN weekly options and occasionally stock options.

To be continued..

Cheers mate,
i just finished 3 years as full time trader, During the young age, with 6 digit salary, i quit everything to fulfill my passion, and, i am very happy with it, instead of working someone, we can progress ourselves, it's really happy to see the same guy like me, wishing for your all success

 

[amrutham]

Hi Amrutham,
That looks like a nice spread.
But was wondering why would you choose 300PE on upside, was it due to 300 being strong resistance?
Help me with your thought process.

How about going with 290PE at around 35, it would give fully positive result on upside and while longer range on down side till about 235?

Apologies if you have been explaining this earlier in the thread, just started following it recently!

Planning to take below stock option trade tomorrow for Sept expiry.

TataMotors Friday closing price @255

Sell TataMotors 270 PE 3000 Qty @ 19.5
Buy TataMotos 300 PE 1500 Qty @ 42.5

Net Debit = 42.5 - 19.5-19.5 = 3.5*1500 = 5250

Margin blocked in Zerodha = around 90K

Plan of Action :

If it closes above 300 by expiry, then this can be made atleast a break-even trade by adjusting 270 PE upwards towards the end of the series.

Below 240, this position will start giving loss, and planning to acquire the stock with cost price around 240.

If it closes between 240 and 300, this position will give profit with max profit, 40K @ 270.

Have not taken this trade, since the initial debt as per the new prices is more than expected and the spread between bid/ask is too high.

Will wait until next week to initiate this trade.

 

[amrutham]

Made adjustment to this position.

NF Spot @ 11525

Buy 11600 CE 225 Qty @ 54
Sell 11400 PE 225 Qty @ 41

Debit = 13*225 = around 3K

Net credit for the position = 37K

Made one more adjustment to this position.

NF Spot @ 11655

Buy 11100 PE 450 Qty @ 2.5
Sell 11700 PE 225 Qty @ 65

Credit = 13.5K

Net credit for the position = around 50K

Outstanding position.

Sell 11400 PE 225 Qty
Sell 11600 CE 225 Qty
Sell 11700 PE 225 Qty