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

[jamit_05]

This method is about locking in the gains. Not let a single trip go waste. We are not looking for big profits, but a mere 5% growth each month (or even less).

In the next trip

*up we will sell one more CE or a NF (lets see)
*down we will sell one PE of 5700, which will fetch around 50 points.

 

[jamit_05]

After NF reaches a gain of around 200 points we could sell em, till then selling CEs seems sensible.

So far we have only sold 50units 5800 APR CE @130 points. And waiting for a pullback to below 5800 to sell one PE.

 

[jamit_05]

Now our 5700 Nf is around 200 points in profit... further selling 5900 APR CE will fetch another 120 points... that is a total of 320 points. I think I will take that offer... Thank you very much.

Now that the uptrend is established. I will look to sell PEs at pullbacks. Will mostly sell 5800 PEs and not 5700 PEs which we have in stock.

 

[jamit_05]

5900 APR CE sold 100 units at 117=

I have noticed that after a strong day although there is a gap the next day the option prices remain stable or slightly fall !! So next time onwards, I will sell options at EOD.

This will fetch 200 points on NF and 117 points here.. so a total of 317 points.

 

[jamit_05]

Total premium collected on selling CEs

100*117 5900 CE = 11700
50*130 5800 CE = 6500

Total = 18200-

We have also locked gains of 200 points per NF lot and lost 70 points per lot in PEs. So the net result is a gain of

200 - 140 = 70 points per NF lot.

If we closed all positions now, we would've reached out target of 50 points per lot. But, that is besides the point. Will go ahead and enjoy the trades this method gives.

 

[jamit_05]

in 5940 to 6000 range of SPOT, I will sell 2 more lots of NFs (and not CEs). The expectation is that market should give correction of atleast 50 points. If that happens we will buy back NFs, if that does not happen we will have to settle with the gain of 250 to 300 points gain.

Its win-win from here on.

 

[jamit_05]

in 5940 to 6000 range of SPOT, I will sell 2 more lots of NFs (and not CEs). The expectation is that market should give correction of atleast 50 points. If that happens we will buy back NFs, if that does not happen we will have to settle with the gain of 250 to 300 points gain.

Its win-win from here on.

This is still the intention, but market is showing so much strength. It feels like a raw deal to buy -ve delta. But, 6000 is a round figure, and has multiple tops. So, I will sell two lots of 6000 APR CEs for Rs.120 (cmp 97)

 

[jamit_05]

SOLD 100 units NF lot at 6000; Total gain 6000-5700 = 300*100 = 30000

Earlier Sold:

100*117 5900 CE = 11700 (2)
50*130 5800 CE = 6500 (1)

==========================
Total gains = Rs.48200

We still have 5 NFs lots left.

 

[PartTime_Trader]

I am not really surprised to see low participation on this (and these kind of) threads . . .

Seems most of the participants looking for excitement of intraday multiple trades up/down or doing big teji / mandi with colorful charts and 100s of AFLs . . .

Not many seem to be interested in any strategy that involves some extra efforts on our side for assimilating and implementing . . .

Anyway for everyone their own . . .

Cheers
::thumb::

 

[jamit_05]

I am not really surprised to see low participation on this (and these kind of) threads . . .

Seems most of the participants looking for excitement of intraday multiple trades up/down or doing big teji / mandi with colorful charts and 100s of AFLs . . .

Not many seem to be interested in any strategy that involves some extra efforts on our side for assimilating and implementing . . .

Anyway for everyone their own . . .

Cheers
::thumb::

The Title itself is uninviting of the speculating types. Who wants Low Returns these days!