Low Risk Low Returns- Target 50 NF per month per NF Lot

[jamit_05]

150*70 5900 MAR PEs = 10500 (2 pe)
200*64 5900 MAR PEs = 12800 (4 pe)
200*44 5900 MAR PEs = 8800 (4 pe)
200*22 5800 MAR PEs = 4400 (4 pe)
NF 6000-5700 = 300*100 = 30000 (2)
100*117 5900 APR CE = 11700 (2)
50*130 5800 APR CE = 6500 (1)

==========================

Total Gain = 84700

5 Lots of 5700 PE and 5 lots of NF left.

 

[jamit_05]

New trade. (will continue to follow the old one too)

Buying 10 APR NF lots @5936
Buying 20 APR 5900 PE Lots @ 90

The way price is consolidating, I could take a small risk of selling

50 units of APR 5900 PE @ 100;

gained 50*100 = 5000;

Stock 2:

Buying 10 APR NF lots @5936
Buying 19 APR 5900 PE Lots @ 90

 

[internet_fanbboy]

The way price is consolidating, I could take a small risk of selling

50 units of APR 5900 PE @ 100;

gained 50*100 = 5000;

Stock 2:

Buying 10 APR NF lots @5936
Buying 19 APR 5900 PE Lots @ 90

Just to add, Presently Delta of the position is about -500, which means money is made as the prices come down.

What adjustment are you looking to make if the market moves by +2/-2%.

 

[jamit_05]

Just to add, Presently Delta of the position is about -500, which means money is made as the prices come down.

What adjustment are you looking to make if the market moves by +2/-2%.

Very good question.

Honestly, this is not a pure delta neutral approach. I have a level in mind, below which the uptrend is expected to change into down. Below that level I will neutralize this bullish delta.

 

[jamit_05]

One significant mistake was committed in the 1st Stock:

disproportionate number of PEs were liquidated. This is going away from the essence.

As a remedy, If trend changes to Bearish. Then you will be forced to cover the sold PEs. This is incur a loss, probably wipe out all profit.

 

[jamit_05]

One big risk in DN

Fall in VIX after strong news-moves.

Avoid taking long positions a week before. After the news, use this time to take long positions.

From another perspective, since you get the move and since you book profit at every move, this risk should not matter much. So it depends on your exit rules.

 

[jamit_05]

Difference between Futures and DN trading

(A)
On a psychological level, DN is supposed to be easy on you. Purist would argue that if you find trading straining on the nerves then you haven't got it right. But, I am sure no matter how well trained you are when the stakes increase to your limit, stress is inevitable.

However, that is not the case in DN. Only tick is the Theta, which, at worst, may not give you profit for a month or two a year. But no loss for sure.

So DN is stress free.

(B)

Due to this psychological factor, the position size in FT will always be way less than in DN.

(C)

DN is very money intensive. Probably 3 times as much as FT. Cost of capital will be a factor.

(D)

In FT you cannot benefit from every move. Like anti trend ones. But in DN every move gives you money.

 

[SaravananKS]

Difference between Futures and DN trading

(A)
On a psychological level, DN is supposed to be easy on you. Purist would argue that if you find trading straining on the nerves then you haven't got it right. But, I am sure no matter how well trained you are when the stakes increase to your limit, stress is inevitable.

However, that is not the case in DN. Only tick is the Theta, which, at worst, may not give you profit for a month or two a year. But no loss for sure.

So DN is stress free.

(B)

Due to this psychological factor, the position size in FT will always be way less than in DN.

(C)

DN is very money intensive. Probably 3 times as much as FT. Cost of capital will be a factor.

(D)

In FT you cannot benefit from every move. Like anti trend ones. But in DN every move gives you money.

Jamit,
Nice explanation One doubt are you trading in real trade (all abv Trades Posted)??? if yes what will be the Trading capital ??

 

[jamit_05]

Jamit,
Nice explanation One doubt are you trading in real trade (all abv Trades Posted)??? if yes what will be the Trading capital ??

This is capital intensive. Very.

10 Lots NF = 3L
20 lots PEs = 70K
Covered CEs = 30K
MtoM = 50K


4L to 4.5; This is minimum;

 

[jamit_05]

Jamit,
Nice explanation One doubt are you trading in real trade (all abv Trades Posted)??? if yes what will be the Trading capital ??

Not real money. Still have not "experienced" the method. Still making big mistakes. Like in Stock 1: Sold major qty PEs!! That is speculation. Not DN.