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

[jamit_05]

Will layout two different sets, with a stoploss of 30%

one set will be of further month, but with NF and the other with only options.

Set #7
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Buy 10 lots NF Feb @ 10970 (Spot 10894, Premium 76) 10900 CE is 294, around 70 points more than PEs. So we are not saving on premium paid. But will save a lot on time decay. And will be able to sell on the spot, wont have to wait for expiry.

Buy 20 lots FEB PE 10900 @ 225

Total Premium paid... 225*20+76*10 = 5260;
Stop Loss of 30% at 3680.

This will lose 30% value in a months time.


Set #8
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Buy 5 lots Jan 10900 CEs 204
Buy 5 lots Jan 10900 PEs 168

This will lose 30% value in less than two weeks time.

 

[jamit_05]

The objective is at expiry have, at least five of either Bull Call or Bear Put spreads.

Set #8
--------

Buy 5 lots Jan 10900 CEs 204
Buy 5 lots Jan 10900 PEs 168

Sell Jan 10850 PE 160

 

[jamit_05]

Set #7

Buy 10 lots NF Feb @ 10970
Buy 20 lots FEB PE 10900 @ 225

sell FEB PE 10900 @ 250
sell FEB PE 10900 @ 270
sell FEB PE 10900 @ 295
sell FEB PE 10900 @ 286

sell 1 lot NF Feb @ 10870
sell 1 lot NF Feb @ 10880

 

[jamit_05]

Set #8
--------

Buy 5 lots Jan 10900 CEs 204
Buy 5 lots Jan 10900 PEs 168

Sell Jan 10850 PE 160
Sell Jan 10800 PE 173
Sell Jan 10750 PE 175

 

[jamit_05]

Set #7

Buy 10 lots NF Feb @ 10970
Buy 20 lots FEB PE 10900 @ 225

sell FEB PE 10900 @ 250
sell FEB PE 10900 @ 270
sell FEB PE 10900 @ 295
sell FEB PE 10900 @ 286

sell 1 lot NF Feb @ 10880


EDIT: The earlier to sell nf at 10870 was wrong, as it was a loss making decision. Therefore, reversed it.

 

[jamit_05]

Set #8
--------

Buy 5 lots Jan 10900 CEs 204
Buy 5 lots Jan 10900 PEs 168

Sell Jan 10850 PE 160
Sell Jan 10800 PE 173
Sell Jan 10750 PE 175
Sell Jan 10700 PE 199

 

[jamit_05]

Set #7

Buy 10 lots NF Feb @ 10970
Buy 20 lots FEB PE 10900 @ 225

sell FEB PE 10900 @ 250
sell FEB PE 10900 @ 270
sell FEB PE 10900 @ 295
sell FEB PE 10900 @ 286
Sell Feb PE 10900 324 3/1
Sell Feb PE 10900 324 3/1


sell 1 lot NF Feb @ 10880

 

[jamit_05]

Set #7

Buy 10 lots NF Feb @ 10970
Buy 20 lots FEB PE 10900 @ 225

sell FEB PE 10900 @ 250
sell FEB PE 10900 @ 270
sell FEB PE 10900 @ 295
sell FEB PE 10900 @ 286
Sell Feb PE 10900 324 3/1
Sell Feb PE 10900 324 3/1


sell 1 lot NF Feb @ 10880
sell 1 lot NF Feb @ 10895
sell 1 lot NF Feb @ 10895

Net profit from these "three sets" being sold is -5+123+41 = 159 points

However, it is noted that the overall set is losing money due to time decay.

Buy 10 lots NF Feb @ 10970 : CMP 10885 loss 850
Buy 20 lots FEB PE 10900 @ 225 CMP 240 ; gain 600
Net loss is 250 points. However, there is a procedure in place to more than make up for this loss.

Balance stock is:

Buy 7 lots NF Feb @ 10970
Buy 14 lots FEB PE 10900 @ 225

Added three sets:

Buy 3 lots NF Feb @ 10895 (spot 10818)
Buy 6 lots Feb PE 10800 @ 205

 

[jamit_05]

Gain 159 cf.

Balance stock is:

Buy 7 lots NF Feb @ 10970
Buy 14 lots FEB PE 10900 @ 225
Buy 3 lots NF Feb @ 10895 (spot 10818)
Buy 6 lots Feb PE 10800 @ 205

Order Placed
FEB PE 10900 @ 300
FEB PE 10900 @ 300

 

[jamit_05]

Gain 159 cf.

Buy 7 lots NF Feb @ 10970
Buy 14 lots FEB PE 10900 @ 225
Buy 3 lots NF Feb @ 10895 (spot 10818)
Buy 6 lots Feb PE 10800 @ 205

Sell NF Feb @ 10905 (loss 65 pts
Sell 2 lots FEB PE 10900 @ 270 (gain 270-225=90 pts)
Gain: 25 points

total gain so far: 159+25 = 184 pts

Balance stock
Buy 6 lots NF Feb @ 10970
Buy 12 lots FEB PE 10900 @ 225
Buy 3 lots NF Feb @ 10895 (spot 10818)
Buy 6 lots Feb PE 10800 @ 205

Buy 3 lots NF Feb @ 10907 (Rs.63 lower than initial purchase)
Buy 6 lots Feb PE 10900 @ 218 (Rs.7 lower than initial purchase) (total Rs.70 lower than initial purchase)

Looks like this month is going to be slugish