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

[jamit_05]

Hi Amit,

If you are planning to get profit out of Premium and time value, I did not understand the idea of Buying.

So i did not understand your strategy.

Can you explain a bit more ?

If it is only options then I could have told you using my Options Strategy calculator on what would be the Profit If NIFTY is at 7800 or When NIFTY is at 7400.

But in this I am not able to.

Raj,

Lets look at it this way.

I see the trend as up. Hence bot NF. And protected them by buying PEs. A delta neutral trade.

Now, the challenge is to fight the time decay and emerge with a little profit at month end or the next as I understand that not every month will be trending.

 

[jamit_05]

Paid: 167*50*30 = 250500

Present Value:
-------------------
203*50*28 = 284200
200*50=10000
216*50=10800
-----------------------------
305000

Diff: 54500

Lost in NF = (7586-7686)*50*15 = -75000
--------------
Mark-to-Market Loss: 20500

 

[healthraj]

Raj,

Lets look at it this way.

I see the trend as up. Hence bot NF. And protected them by buying PEs. A delta neutral trade.

Now, the challenge is to fight the time decay and emerge with a little profit at month end or the next as I understand that not every month will be trending.

So in that case it is a Like a BULL Spread or a BEAR Spread.
So one leg is Futures and the other leg is Options.

So the idea is to create a Spread or the Risk. Normally in a Spread strategy the Risk will be limited and the Reward also will be limited.

And since you are using the Options in one leg, Apart from Trending, the VOLT is also important. May be what you are assuming is that in a trending market normally the VOLT will go up. But it can also go down. So from my point of view if you can have a view on the VOLT and you see the VOLT going UP or will remain stable, then you can go for this strategy. If the VOLT will drop significantly then the loss on the Options Side will be huge compared to the profit in Futures.

 

[jamit_05]

So in that case it is a Like a BULL Spread or a BEAR Spread.
So one leg is Futures and the other leg is Options.

So the idea is to create a Spread or the Risk. Normally in a Spread strategy the Risk will be limited and the Reward also will be limited.

And since you are using the Options in one leg, Apart from Trending, the VOLT is also important. May be what you are assuming is that in a trending market normally the VOLT will go up. But it can also go down. So from my point of view if you can have a view on the VOLT and you see the VOLT going UP or will remain stable, then you can go for this strategy. If the VOLT will drop significantly then the loss on the Options Side will be huge compared to the profit in Futures.

Yes, I agree that Volatility will cause trouble.

To overcome that I have referred to the VIX chart. Won't buy options is VIX is expensive.

 

[jamit_05]

Action:

Sold July 78PE @ 129;
Collected: 129*50 = 6450;


==============================
Paid: 167*50*30 = 250500
Present Value: 155*50*30 = 232500
-------------
-18000

NF = (7700-7686)*50*15 = 10500
-------------------------------
M2M: -7500

For 78CE July SOLD
129*50 = 6450
-------------------------------
Net M2M = -1050;

Adjustments:

For 76PE Aug SOLD
200*50=10000
216*50=10800

 

[jamit_05]

<...........>

 

[HEM]

some add to jamit signature :-


यह महान दृश्य है बाज़ार का,
चल रहा मनुष्य है,
अश्रु, स्वेद, रक्त और पैसे से
लथ-पथ, लथ-पथ, लथ-पथ.






HEM

 

[jamit_05]

Paid: 167*50*30 = 250500
Present Value: 165*50*30 = 247500;
-------------
-3000;

NF = (7688-7686)*50*15 = 1500
-------------------------------
M2M: -1500

For 78CE July SOLD
129*50 = 6450
-------------------------------
Net M2M = +5000;

Adjustments:

For 76PE Aug SOLD
200*50=10000
216*50=10800

 

[jamit_05]

Paid: 167*50*30 = 250500
Present Value: 197*50*30 = 295500;
-------------
45000;

NF = (7603-7686)*50*15 = -62250
-------------------------------
M2M: -17250

For 78CE July SOLD
129*50 = 6450
-------------------------------
Net M2M = -10800

Adjustments:

For 76PE Aug SOLD
200*50=10000
216*50=10800

 

[jamit_05]

Paid: 167*50*30 = 250500
Present Value: 197*50*30 = 295500;
-------------
45000;

NF = (7603-7686)*50*15 = -62250
-------------------------------
M2M: -17250

For 78CE July SOLD
129*50 = 6450
-------------------------------
Net M2M = -10800

Adjustments:

For 76PE Aug SOLD
200*50=10000
216*50=10800


__________________