Options Adjustments

[toughard]

what software is that which draws the strategy payoff ?

thats an excel based tool which I bought it from a vendor in banaglore..

 

[lemondew]

Can you also suggest what changes to get your graph.
Thanks.

Okay... if someone is ready for 1 to 1 RRR...
then they can prefer broken legs... we will take this with lemondews trade example...

this is lemondews trade iron condor presently....

this is advised... it can be tilted for opp view...

investment is same for both the strategies and one can see the pro's and cons, BO points and RRR's with the help of above pics & any questions welcome..

toughard...

 

[lemondew]

I think you are suggesting to buy back 7200PE and sell 7150 PE which is a good one too. this is better then what i did. This is getting interesting.

Leave CE as it is

buy back 7200PE and sell 7150 PE the tail of graph would be as toughy suggested and a head will have max loss of 62*50. That would ve been a nice adjustment. Anyway for now we will go with the way we did.

 

[toughard]

I think you are suggesting to buy back 7200PE and sell 7150 PE which is a good one too. i would suggest a better one then what i did. This is getting interesting.

Leave CE as it is

buy back 7200PE and sell 7150 PE the tail of graph would be as toughy suggested and a head will have max loss of 62*50. That would ve been a nice adjustment. Anyway for now we will go with the way we did.

dear lemondew why you want to sell which is even more cheaper.. always sell something which is higher value... DONT buy back 7200PE... instead of leaving CE side as it is LEAVE PE as it is and BUY BACK 7500CE and SELL 7400 CE by doing so you will get the below details

Changing PE Trade -

Changing CE trade-

 

[lemondew]

Hi tough,

Pls keep your suggestion coming. I dont want to come lower on CE side because I dont want to rely so much on my directions and keep it safer. So I would move my put further away so that I also take care of my directions.

A good way was to a) sell PE 7150 buy 7200PE. How different is it from what i did of selling b) 7100PE buying 7000 PE.
Advantages of a)
1) Downside max loss comes to -530 while at same time upside risk is only 3080
2) Had to buy/sell 1 pair less
Disadvantages
1) this would give me 4+ additional 7 points if nifty remains above 7150

advantages of b)
1) This would give me 4+ additional 9 points if nifty remains above 7100
disadvantage of b)
1) upside downside risk is 3000

Lets wait and see how i manage/mismanage the same

dear lemondew why you want to sell which is even more cheaper.. always sell something which is higher value... DONT buy back 7200PE... instead of leaving CE side as it is LEAVE PE as it is and BUY BACK 7500CE and SELL 7400 CE by doing so you will get the below details

Changing PE Trade -

Changing CE trade-

 

[lemondew]

Toughard,

do you want to manage the positions I ve taken on the thread. I would go on and put my ways on my diary. May be at the end of series we can discuss how at each stage each one would have managed and then how it could be best managed.

Please in any case note down what you would you have done in this case sold 7400CE with all details. Then we can do a back analysis.

 

[toughard]

Toughard,

do you want to manage the positions I ve taken on the thread. I would go on and put my ways on my diary. May be at the end of series we can discuss how at each stage each one would have managed and then how it could be best managed.

Please in any case note down what you would you have done in this case sold 7400CE with all details. Then we can do a back analysis.

Dear lemondew I was just sharing my inputs... you please continue with your trades here only

I will update my simulations....

 

[toughard]

At Present...

Portfolio design---
60% (15% X 4) structured trades
10% for naked option trading
20% for M2M (untouched)
///////////////////////////////////////////////////////////////////

1st 15%----------
Funds employed 15% of capital...
Per lot trade need Rs 40000...
RR - 1:4
aim to achieve 10% profits on invested amount if loss then 2.5% of 15% of portfolio (an income generation) Effect on portfolio if loss 0.5% including all charges...
Porfolio RRR is 0.5% to 1.5%
pay out sheet....

2nd trade ---- naked trading
bought 7200 PE @ +/- 60 with a stop as 7400 CE OI shedding below 4M
Money Management - using 2% of capital


3rd trade legging one--
BUY 71PE & 73PE
BUY 73CE & 75CE
lets add other legs as market moves... present pay off

updates for these simulated trades will be at necessary points... [/B]

good luck all....

toughard

For the 3rd trade added leg with 7400 CE buying 100 @ 134.00

 

[trump]

thats an excel based tool which I bought it from a vendor in banaglore..

that was cool.

 

[toughard]

For the 3rd trade added leg with 7400 CE buying 100 @ 134.00

By doing this we are able to achieve all legs above zero line CE side become fool proof now..
Please see...