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

[jamit_05]

is this against your june otions buy ?

The June wings were purchased just in case the election results cause 1000 point swings. I don't know, I just wanted to be cautious. But now it appears that there is no need for them.

 

[jamit_05]

Spot 11832
Sell 30March 11800 CE 189
Sell 30March 11800 PE 118

Spot 930
Sell 900 CE //PE. 96+62 = 158
With expiry in three days, with this premium collected we have room for around 200 points of price swing. This is an advantage because statistics say that nifty has average displacement of 120 points per week.

 

[jamit_05]

Spot 11832
Sell 30March 11800 CE 189 cmp 112
Sell 30March 11800 PE 118 cmp 37



Spot 930
Sell 900 CE //PE. 96+62 = 158 cmp 56+77

Both the trades are doing well, and there has been no need to adjust the delta since the movement wasn't much.

 

[jamit_05]

Both these trades are in their best case scenarios, where the movement is within 150 points, and they keep bleeding.

Spot 11832
Sell 30March 11800 CE 189 cmp 112
Sell 30March 11800 PE 118 cmp 37

This pair however needs pruning. Because PE is now only 11 points. So, if there is a 100 point upmove, then the CE will gain 60 points, with PE losing paltry. Meaning, the Delta is skewed. So, I need to sell more PEs, but of same expiry which is not over 11800.... which means I cannot sell more PEs!

My only option therefore is to get out of this pair. And sell an ATM 6June Pair.

So,

Fresh Selling:
Spot 11900
Sell 6June 11900 CE 102
Sell 6June 11900 PE 92

Squaring off:
Spot 11832
Sell 30March 11800 CE 189 cmp 114
Sell 30March 11800 PE 118 cmp 14
-------------
Net Gain: 179 points.



This Third pair is doing okay, so will not book profit on it.

Spot 930
Sell 900 CE //PE. 96+62 = 158 cmp 50+43
Net Gain: 65 points.

 

[jamit_05]

Squared off
Spot 930
Sell 900 CE //PE. 96+62 = 158 cmp 20+42
Net Gain: 96 points.

Holding only:

Spot 11900
Sell 6June 11900 CE 102
Sell 6June 11900 PE 92
CMP 93+82

Logic is that, we have collected 194 points, this will support us for around 200 to 300 points of move. After that we will have to start putting in more margin money and start managing the position.

31/5 morning, the price has moved 100 points, CMP 128+56. There still isn't a pressing need to balance. However, 12K has max OI a very high at that.

Sell 6June 12000 CE 72

 

[jamit_05]

Holding only:

Spot 11900
Sell 6June 11900 CE 102
Sell 6June 11900 PE 92
CMP 70+76

Current premiums are a good support only for a 100 point move. There is an unfilled gap at 11400 if gets filled, then this 500 point move will be devastating, but a great experience in managing the position.
-------------
Sell 6June 12000 CE 72
CMP 40

Have completely bagged 12000CE premium. Will wait for a down move to sell 11700PE

 

[jamit_05]

Also starting a one-winged Iron Butterfly, it is somewhat safer.

Logic is that I see 12000 and 12100 CEs on max OI, much more than the PE side. Therefore, I am not really threatened on the upside.

13June
Sell 11900 115+113
Buy 11700 PE 47
----------------------
Collected: 181

I expect to retain most of this at expiry.
Strategy: At every 100 point down move, I will sell Bull Call Spread, and collect that premium

 

[jamit_05]

Spot 11900
Sell 6June 11900 CE 102
Sell 6June 11900 PE 92
CMP 199+17

-------------
Sell 6June 12000 CE 72
CMP 117

Net Loss of 70 points.

To offset this loss, we will need to sell some PEs. Will do so whenever the price trickles down 50 odd points.

 

[jamit_05]

13June
Sell 11900 115+113
Buy 11700 PE 47
----------------------
Collected: 181

Sold 11700PE for 33
Bought 11800PE for 53
----------------
Paid 20

Sold 11800PE 43
Bought 11900PE 65
---------
Paid 22

Sold 12100 CE 77

Essentially, we now only have

13June PE Side:

11900 @ 113 CMP 53 = +60 points/
WING: Bought 11700PE, paid 47+42=90 points. CMP 60 = -30 points

PE Side Net Profit: 30 points

13June Ce Side
Sold 11900 CE 118 CMP 188 M2M-Loss 70 poiints

Sold 12100 CE 77 CMP 73 = +0 Squared Off
Sold 12200 CE 57 CMP 37 = +20 Squared Off

Ce side Net Loss 70-20 = 50 points

 

[jamit_05]

Holding only:

Spot 11900
Sell 6June 11900 CE 102 CMP 142 = -40
Sell 6June 11900 PE 92 CMP 12 = +80
-------------
Sell 6June 12000 CE 72 CMP 42 = +30

Net Gain: 80+30-40 = 70 points.

Sell 6June 12000 PE 40