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

[jamit_05]

There is a little pressure to collect premiums as there will be post-budget-IV-collapse.

Selling a strangle here...
Sold 200 units 80CE @ 68 = 13600
Sold 200 units 75CE @ 56 = 11200
Collected: 24800;

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

Paid: 167*50*30 = 250500
Present Value: 108*50*30 = 162000;
-------------
-88500

NF = (7790-7686)*50*15 = 78000;
-------------------------------
M2M: -10500

Sold 78CE July 129*50 = 6450 (148)
Sold 77CE July 185*50 = 9250 (206)
Sold 77CE July 125*50 = 6250 (206)
-------------------------------
Net M2M = 11450
If July ends above 78, which it probably will, then would sell the Futures to cover for loss due to the above CEs closing ITM.


-------
Adjustments:

1) 75PE July SOLD
156*50=7800; (55)

2) 76PE July SOLD
175*100=17500 (80)
--------
Collected: 25300
80/75 Strangle Collected : 24800;
Total: 50100;

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

Overall it looks profitable. As of now, if a capital of 10L, roughly, were to be considered employed, then interest return is decent.

 

[jamit_05]

Have been nursing a sold strangle of 78/75. Credit was 175;

Bot protection of a Bull Call 80/82 at a debit of 45; Lowering BEP to 7930
Will square it off if price does not capture 8000. Will watch the options chain for max OI shifting above 80CE.


Sold a favourable Bull Put of 78/77 at a credit of 40; If price goes up, then I will retain this 40 credit and hence raise BEP to 7990; Near Breakeven. More importantly, if price comes down I will book a loss, which is what i want as this will increase the chances of retaining the original credit of 175 from the sold 78/75 strangle.

Point of action will be Nifty Spot touching 7650, right in the middle of 78/75 strangle. Which is when I will square off 80/82 and 78/77 both at a loss.

 

[jamit_05]

Paid: 167*50*30 = 250500
Present Value: 162*50*30 = 243000;
-------------
-7500

NF = (7630-7686)*50*15 = -42000;
-------------------------------
M2M: -50000

-------
Adjustments:

Sold CEs against NF:
Sold 78CE July 129*50 = 6450 (79)
Sold 77CE July 185*50 = 9250 (117)
Sold 77CE July 125*50 = 6250 (117)
Total1: 22000


Sold PEs
75PE July 156*50=7800; (95)
76PE July 175*100=17500 (134)
--------
Total2: 25000

Total3: Sold Strangle to trap price betw 80/75 and from it collected 25000;

================================================
Total Collected: 22k+25k+25k=72k

--------
Net M2M profit is: 72-50=22K

 

[jamit_05]

SOLD AUG 74PE 400 Units @107=42000;
BOT back all CEs for Rs.4550; Hence gaining a net of Rs.17K;

============================
Paid: 167*50*30 = 250500
Present Value: 200*50*30 = 300000;
-------------
49500

NF = (7485-7686)*50*15 = -150750;
-------------------------------
M2M: -100k;

-------
Adjustments:

Net Gain from CEs. Total1: 17K


Sold PEs
75PE July 156*50=7800; (108)
76PE July 175*100=17500 (165)
74PE Aug 107*400=42000;
--------
Total2: 68000;

Total3: Sold Strangle to trap price betw 80/75 and from it collected 25000;
(Bot back 80CE @6; Left with SOLD 75PE July 200units)

================================================
Total Collected: 17k+25k+68k=110k

--------
Net M2M profit is: 110-100=10k
============

If there is a 200 point upmove it will be a great opportunity to rollover to the next month with profit.

 

[jamit_05]

<reevaluated the move>

 

[jamit_05]

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

 

[jamit_05]

Have been nursing a sold strangle of 78/75. Credit was 175;

Bot protection of a Bull Call 80/82 at a debit of 45; Lowering BEP to 7930
Will square it off if price does not capture 8000. Will watch the options chain for max OI shifting above 80CE.


Sold a favourable Bull Put of 78/77 at a credit of 40; If price goes up, then I will retain this 40 credit and hence raise BEP to 7990; Near Breakeven. More importantly, if price comes down I will book a loss, which is what i want as this will increase the chances of retaining the original credit of 175 from the sold 78/75 strangle.

Point of action will be Nifty Spot touching 7650, right in the middle of 78/75 strangle. Which is when I will square off 80/82 and 78/77 both at a loss.

Made a mess of this trying to make adjustments. Exited it near breakeven.

 

[jamit_05]

A sharp fall in option prices, rending July Options as poor choices for selling. Even Aug ATM PE is barely 100.

Had forseen it and had sold 25K worth, but apparently that wasn't enough. Selling all 15 Lots of 80CE at 65 was probably the best thing to do.

Whatever was sold worked well.

 

[jamit_05]

Covered 250 Units of 75PE July @77; Cost:20000;

============================
Paid: 167*50*30 = 250500
Present Value: 200*50*30 = 300000;
-------------
49500

NF = (7485-7686)*50*15 = -150750;
-------------------------------
M2M: -100k;

-------
Adjustments:

Net Gain from CEs. Total1: 17K


Sold PEs
76PE July 175*100=17500 (165)
74PE Aug 107*400=42000;
--------
Total2: 68000;

Total3: Gains from Sold Strangle: 5K
(this was the wrong move... shouldve gone all out with this hedge)

================================================
Total Collected: 17k+5k+68k=90k

--------
Net M2M profit is: 90-100=-10
============

If there is a 200 point upmove it will be a great opportunity to rollover to the next month with profit.[/QUOTE]

 

[jamit_05]

FnO Portfolio - II

Experimenting with very far month Puts.

Long 75PE DEC @224 30 Lots
Long NF Aug @7570 15 Lots.