Directional credit spread

[lokanathpai]

POSITION ON 22/12/17
DEC10000P BUY 2625 1.75 -4593.75
DEC9900P SELL 2625 1.30 3412.50
-1181.25
PROFIT RETENTION 69168.75

I CLOSED THIS POSITION
INITIAL CAPITAL 2359561.25
ADD:RETAINED PROFIT 69168.75
LESS:BOOKED LOSS -44100.00
NEW CAPITAL 2428730.00

 

[lokanathpai]

CAPITAL 2428730
RISK AMOUNT 10% 242873
INVESTIBLE AMOUNT 2185857

AS NIFTY DID NOT BREACH 10000 UPTREND IS MAINTAINED
MAX OPEN INT FOR JAN SERIES FOR PUT IS FOR STRIKE 10000
PUT 10000 23.35 A
HEDGE 9900 16.00 B
INCOME: (A-B) 7.35
MAX LOSS (100-INCOME) 92.65
TRADEABLE POSITIONS LOTS(RISK AMT/MAX LOSS) 35 LOTS 2625

TRADE ON 22/12/2017
JAN10000PUT SELL 2625 23.35 61293.75
JAN9900PUT BUY 2625 16.00 -42000.00
MAXPROFIT 19293.75

 

[lokanathpai]

POSITION ON 29/12/2017
JAN10000PUT BUY 2625 18.60 -48825.00
JAN9900PUT SELL 2625 13.30 34912.50
-13912.50
PROFIT RETENTION 5381.25

 

[lokanathpai]

MAX OPEN INT FOR PUT MOVED TO 10300
HENCE I AM REPLACING CS POSITION WITH 10300/10200
TRADE ON 29/12/17
JAN10300PUT SELL 2625 54.00 141750.00
JAN10200PUT BUY 2625 37.60 -98700.00
43050.00
INCOME 43050.00
REPLACEMENT COST -13912.50
ADDL INCOME 29137.50
INITIAL INCOME 19293.75
TOTAL INCOME 48431.25

 

[ayman.khaza]

MAX OPEN INT FOR PUT MOVED TO 10300
HENCE I AM REPLACING CS POSITION WITH 10300/10200
TRADE ON 29/12/17
JAN10300PUT SELL 2625 54.00 141750.00
JAN10200PUT BUY 2625 37.60 -98700.00
43050.00
INCOME 43050.00
REPLACEMENT COST -13912.50
ADDL INCOME 29137.50
INITIAL INCOME 19293.75
TOTAL INCOME 48431.25

I was trying this kind of strategy from quite some time on and off. Though I'm doing only with 2 lots as of now and learning. Heart of this kind of spread is strike selection and we will be aware of max loss/profit. IV does play a major role here. Your thread is very inspiring. Thanks

Sent from my Redmi 3S using Tapatalk

 

[lokanathpai]

POSITION ON 05/01/18
JAN10300PUT BUY 2625 34.00 -89250.00
JAN10200PUT SELL 2625 21.80 57225.00
-32025.00
PROFIT RETENTION 16406.25

 

[lokanathpai]

I was trying this kind of strategy from quite some time on and off. Though I'm doing only with 2 lots as of now and learning. Heart of this kind of spread is strike selection and we will be aware of max loss/profit. IV does play a major role here. Your thread is very inspiring. Thanks

Sent from my Redmi 3S using Tapatalk

Thanks!!
I was trying to develop a strategy, hoping I will get input/corrections I am posting here. I am doing this since very long. Seems my strategy is working.
This is just a probability play.
IV will increase when market is going down.
Loss on some day is imminent.
Money management is the mantra.
As against conventional 2%-5%, I am keeping 10% as risk amount.
As uptrend is intact, my strategy is working.
Let me see how far this will go.

 

[lokanathpai]

MAX OPEN INT FOR PUT MOVED TO 10400
HENCE I AM REPLACING IC-PUT POSITION WITH 10400/10300
TRADE ON 05/01/18
JAN10400PUT SELL 2625 52.00 136500.00
JAN10300PUT BUY 2526 34.00 -85884.00
50616.00

INCOME 50616.00
REPLACEMENT COST -32025.00
ADDL INCOME 18591.00
INITIAL INCOME 48431.25
TOTAL NEW INCOME 67022.25

 

[lokanathpai]

POSITION ON 12/01/18
JAN10400PUT BUY 2625 19.25 -50531.25
JAN10300PUT SELL 2625 12.30 32287.50
-18243.75
INCOME RETENTION 48778.50

 

[timepass]

Update please.