1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Well number of trades depends on individuals risk taking capability.What my point here is there are very remote chances of Nifty going to 5500 still risk is there but very less.So if particular person can keep good amount of Margin money then he can earn good amount because close to expiry this 5500PE will come close to 0.Currently its trading at 7 suppose you write now with 1000 lots you earn 7000 premium and for rest of series you have to just sit idle.

Always use Roi, for 7000 premium you are putting in 5l giving a return of measly 1.4% with risk, you are better of putting in bank instead

 

[jamit_05]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Well number of trades depends on individuals risk taking capability.What my point here is there are very remote chances of Nifty going to 5500 still risk is there but very less.So if particular person can keep good amount of Margin money then he can earn good amount because close to expiry this 5500PE will come close to 0.Currently its trading at 7 suppose you write now with 1000 lots you earn 7000 premium and for rest of series you have to just sit idle.

By number of trades I do not mean Position Size... I mean number of trades on different instances or dates or time... if u make a report of several such trades the result will be a loss or minor profit... beacuse the approach does not display a significant "edge"

 

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Tomorrow after the INFY Results and IIP data we will take our third position for the month. Please close the positions taken in the last Friday by Today.

So far we have made some 50 points. Somebody trading with 200 poistions would have made Rs 10000 in two weeks.

I would disagree. 5700-6000 taken last week @87 is now 83. So no real RR here. I think this strategy of pairs is applicable only first week and if it is in range. Range breakouts and you are just a break even trader

 

[gmt900]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Raj,

Is it not profitable to sell far Out-Of-Money Put at this point?For e.g sell 5500PE and collect the premium.We know chances of money coming to 5500 in this series are very rare so why not collect as much premium as we can by selling max lots.Thoughts welcome.

I would say it may be preferable to sell Aug 6200 C @ 50 and wait for market to dip and sell 5500 P or 5600P.

600 to 700 points short strangle for @45 days will not be difficult to manage. In case NS goes closer to 6200 or 5500 , one can roll the short strangle up or down.

Chances of nifty crossing 6285 (possible BE point) before Aug end are remote.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I would disagree. 5700-6000 taken last week @87 is now 83. So no real RR here. I think this strategy of pairs is applicable only first week and if it is in range. Range breakouts and you are just a break even trader

OT,

When I posted 5700-6000 Pair was trading at 72 and 5800-6100 pair was trading at 64. So of course it would not be wise to close now.
Today I made 3500 profit (150 positions in 5700-6000 (16 points) pair and 50 positions in 5800-6100 pair ( 34 points)).

Sometimes we have to be quick in taking profits.

5800-6100 pair still trading at 66 which can be closed with 32 points profit.
Those who have not closed the 5700-6000 pair has to wait till the market reaches the 5900-5920 level, where it becomes profitable.

 

[gmt900]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I would say it may be preferable to sell Aug 6200 C @ 50 and wait for market to dip and sell 5500 P or 5600P.

600 to 700 points short strangle for @45 days will not be difficult to manage. In case NS goes closer to 6200 or 5500 , one can roll the short strangle up or down.

Chances of nifty crossing 6285 (possible BE point) before Aug end are remote.

I have written Aug short strangle 6200 C /5600 P @53 and 48 resply.
Investment is less than 1.0 lac. If we see it thr' 10 % return in 45 days or 7% in 30 days.
If you write short strangle well in advance of expiry, you have adequate
time margin to adjust trade . Also it is easier to adjust. In the worst case our profit may reduce due to adjustments.But it will be a relatively stress free trade with commensurate returns.

Upper BEP is 6300 and lower one is 5500, giving a 800 points gap between BEPs

 

[jamit_05]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I would say it may be preferable to sell Aug 6200 C @ 50 and wait for market to dip and sell 5500 P or 5600P.

600 to 700 points short strangle for @45 days will not be difficult to manage. In case NS goes closer to 6200 or 5500 , one can roll the short strangle up or down.

Chances of nifty crossing 6285 (possible BE point) before Aug end are remote.

Issue:

We need a SL for the first naked sold leg.. how much is it gonna be? Cuz, if RBI is hellbent on setting INR/USD straight then even 6300 may breach... that'd put me in a very tricky spot...

Now lets assume that we get Rs.50 for selling the 5500 leg... then my total return is Rs.100 (approx)... So for Rs.100 I do not want to risk more than Rs.100 at any point...

That'd make it a decent trade, but still not good enough.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Those who want to Trade can Trade the pair 5800PE-6000CE available at 97+. It is a bit risky. My thought is the MAX OI still at 6000CE. It has not moved UP. So looking the OI Market will not move beyond 6000CE. Given that Infosys result is there tomorrow, it might favour the postion if INFY Moves in the downward direction. But it is a RISKY Call.

To Add to that DOW Futures which was trading 1%+ is not trading at .8% and FTSE also trading at Lows.
This month my feeling is that Market will not close above 6000.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

MAX CHG in OI at 2200PE-2800CE Pair - changed from 2200PE-3000CE

Monitor the pair 2200PE-2700CE - Whether the prices are going UP / DOWN. If towards the end of the Day if the Premiums are going down, then you can confidently SELL Any pair, 2200-2700 OR 2200-2800 OR 2200-2900 OR 2200-3000 based on your premium

For INFY, I was monitoring the pair 2200-2800. In the morning it was 123 and now it is trading around 124. so no big change in Premium.

I would suggest to sell 2200-2900 Pair available around 100. It is still Risky. But trading also about taking Risk

 

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Those who want to Trade can Trade the pair 5800PE-6000CE available at 97+. It is a bit risky. My thought is the MAX OI still at 6000CE. It has not moved UP. So looking the OI Market will not move beyond 6000CE.

6000.

Agree for the reason that 6000ce has not yet unwound in a significant way