10 lots of NF have been purchased, to sell if market goes higher.
10 lots PEs, to protect these NF.
and
10 lots PEs also hve been purchased. Will sell ATM PEs against these if market goes lower. Essentially converting them to Bear Put Spreads.
The game plan is to sell enough Options against my purchased set, so as to cover the cost plus a little profit if things go well.
This has worked out well last three times.
And Ignore the **note**, its for my reference.
Sorry I am very new to these concepts , so putting it from a layman's perspective ( so that I can understand
)
Base aim : Sell enough Options against the purchased set, so as to cover the cost plus a little profit if things go well.
Set #4
BUY 10 lot NF NOV Fut @10293 -- To sell if market goes higher
BUY 10 lots 10300 PE NOV @ 267 -- To protect from any downside in Nifty
Bear Put Spreads :
BUY 10 lots 10300 PE NOV @ 267 --
SELL 10 lots 10200 PE 232 -- against above 10 lot calls bought
Buying - 20 lots -- Cost 5340 points
Selling - 10 lots -- Received 2320 points
MY assumptions , please correct if I am wrong
- So as per my understanding you will continue adjusting this set based on premiums and market conditions
- It will continue till you get a good profit or till Nov towards expiry with some profit
Apologies if I am bothering you here and you can refer me to somewhere I can learn basics of these concepts.