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

[SaravananKS]

Sold one NF unit at 5990;

Jamit,

As Per Strategy one has to sell only Puts But here You sold Nifty( ie Book Loss)

am I right ??/

 

[jamit_05]

Jamit,

As Per Strategy one has to sell only Puts But here You sold Nifty( ie Book Loss)

am I right ??/

In a downtrend, idea is to sell NF first at pullbacks and then PEs... in profit or loss... as long as PEs have value.

 

[jamit_05]

Sold one NF unit at 5990;

Bought it back at 5945;

 

[jamit_05]

Sold one PE pair @ 153

 

[jamit_05]

Feel terrible about the poor fill... since Apr PEs are not liquid they jumped suddenly... to 165 !!

 

[mangup]

I am still not getting the core idea of this strategy but I would like to watch how jamit manages it....assuming we are in an uptrend and market takes a correction and comes down....now here do we liquidate some puts as they will be in profit or add some futures as we have double the qty of puts....

Next suppose market goes up, then are we selling some futures or buying more puts as our existing puts would have gone down in value......

Anyways, many things will get cleared when we see how it is managed.

I used to do ratio spreads when the ratio spread of 1:2 with 200 points difference was possible which used to give an effective range of 400 nifty points in which the ratio spread used to be profitable. But now the market has become more efficient and such spread in the diff of 100 nifty points is possible without any debit. But this gives effective range of only 200 points and which is not very safe....NF can move 250-350 points in a months time....

Other members are also most welcome to start new threads on how to get decent return on the large capital without taking excessive risk....look forward to such threads..

Smart_trade

That's why opened a topic in one of the thread to know about the "Neutral Option Strategies" or " Zero Risk strategies" so that majority of funds can be parked there. Any one aware of such?

 

[Rish]

That's why opened a topic in one of the thread to know about the "Neutral Option Strategies" or " Zero Risk strategies" so that majority of funds can be parked there. Any one aware of such?

Zero Risk Strategy, just analyse November to January - Yesbank Profit Rs.1.02 lakhs
This month Reliance Capital Rs.8,500.

Now ICICI and HCL Tech is running with Zero Risk Strategy! ! ! ! ! ! !

This is based volatility - Sell option with Sell Future or Buy Future, depends.

Just brain storm and do analysis

 

[pav]

That's why opened a topic in one of the thread to know about the "Neutral Option Strategies" or " Zero Risk strategies" so that majority of funds can be parked there. Any one aware of such?

which Thread ?

 

[HEM]

which Thread ?

Here it is...

http://www.traderji.com/options/78604-simple-option-trade.html

:thumb:

 

[HEM]

Ok,

Atleast Last 2 year backtesting results will give better understanding to implement this strategy.

Last 5 year selling call and put has given average 68% return p.a., without any risk. Just check ! ! ! ! !

Only constraint, Margin Money, otherwise, safe strategy is selling the options is always healthy.

Want a way to control risk, pref 100%. Max Risk Max Return does not feel right.

Hi Rish,

Could you please elaborate on the bold portion ? Suppose margin money is no constraint how do you control risk in case of large swings ? Any stoploss you keep ? OTM or ATM ? Please post your assumptions in backtests...any crises stoploss ? last 5 years must have thrown all such possibilities.....please post your views.

ST

Hello ST

Delay response due to Holiday outing ! ! ! !

Strategy should be only one entry every month.

Entering the trade on settlement day, selling call and put.

January Settlement closing say 6030, just see February Series Call and Put 6000 or 6100. Add the premium, if premium is 279 and above then sell, we should cover the same in the end of the next expiry.

I will post more information how to protect, if either call or put going one side above our selling price ! ! ! ! !

July 2011 to July 2012, file enclosed.

http://www.4shared.com/office/h6vNqUTY/callandput.html?

Password : callandput

Rish

I arrived 279 based some calculation (volatility of year 2004 to 2008), as such this no. is playing good role. I am writing options based on this since from 2008 with crisis management strategy.

If you consider 230 or 250, it will fail.

Whenever the premium is below 180 or 190, market movement will be one side or closing will be +/- 60 points settlement to settlement.

Rish

Dear Rish,

Please elaborate on the bold part of your post...
How we will protect, if either call or put going one side above our selling price..?
What is the crisis management strategy that you are using...?

Hemant