SH's trust with options - aim to make 50% or more returns per annum

[Tradewithhunter]

I would like to use this opportunity to show people the power of selling options.. why it's always better to sell options than buying to make your probability of winning more ....

I wrote 6650 PE yesterday @ 23 when Nifty spot was at 6715 ...... today nifty spot is around 6690 right now ...25 points lower than from my selling point however 6650 PE is still at 24 .. almost at same level even when market has gone against the position by 25 points ....

But when mkts moved up 25 points this morning to 6750 .. 6650 PE traded at 14 (lost 9 points)...

So gains are bigger if mkt moves in our direction but there is almost no loss when mkt moved against our position ...

Cheers
SH

 

[timepass]

I would like to use this opportunity to show people the power of selling options.. why it's always better to sell options than buying to make your probability of winning more ....

I wrote 6650 PE yesterday @ 23 when Nifty spot was at 6715 ...... today nifty spot is around 6690 right now ...25 points lower than from my selling point however 6650 PE is still at 24 .. almost at same level even when market has gone against the position by 25 points ....

But when mkts moved up 25 points this morning to 6750 .. 6650 PE traded at 14 (lost 9 points)...

So gains are bigger if mkt moves in our direction but there is almost no loss when mkt moved against our position ...

Cheers
SH

How would you decide which strike price to sell ?

 

[Tradewithhunter]

How would you decide which strike price to sell ?

I try to sell out of money options ...

6700 PE was trading at 35 and 6650 PE was trading at 23 ..... just 12 points difference for 50 points gap so obviously 6650PE to be shorted is much attractive...

23 points is Rs 1150 per lot .... 4 lots means Rs 4600 profit which is around 5% return in just 1 week if market closes above 6650 before expiry ...

Cheers
SH

 

[Tradewithhunter]

6800 CE SL hit at 25 so exited...Capital 106350...

Bought 6700 PE at 43 (4 lots) ... still holding 4 lots shorts of 6650 CE at 23.50

Cheers
SH

Markets around 100 points up from yesterdays lows...

Exited both legs 6650 PE at 6 & 6700 PE at 13

17 points profit on 6650 PE and 30 point loss on 6700 PE .. net loss 13 points (even when mkts moved 100 points up against our position)

Capital now 103750

Cheers
SH

 

[Tradewithhunter]

Sold 2 lots 6600 PE (May series) at 187

Cheers
SH

 

[Tradewithhunter]

Sold 2 lots 6600 PE (May series) at 187

Cheers
SH

6600 PE trading now around 160 today ... continuing to hold...

Cheers
SH

 

[Tradewithhunter]

6600 PE trading now around 160 today ... continuing to hold...

Cheers
SH

6600 PE now trading around 148....continuing to hold ...

3 EMA not touched spot for last 2 days so to hedge bought 2 lots of 6850 PE (April series) for 12 ... will square off when 3 EMA is touched.

Cheers
SH

 

[Tradewithhunter]

6600 PE now trading around 148....continuing to hold ...

3 EMA not touched spot for last 2 days so to hedge bought 2 lots of 6850 PE (April series) for 12 ... will square off when 3 EMA is touched.

Cheers
SH

Booked the 6850 PE at 22 ...Rs 1000 profit

6600 PE is trading at 132 now .... booked 1 lot at 132 ..holding other lot ....Profit Rs 2750 booked...

Capital now 103750 + 2750 + 1000 = 107500

Cheers
SH

 

[anilnegi]

Sh

whats would be the calculation for
1. selling the put option
2. buying the put option.

if possible explain with monetary example

thanks
anil

 

[Tradewithhunter]

Sh

whats would be the calculation for
1. selling the put option
2. buying the put option.

if possible explain with monetary example

thanks
anil

What do you mean by calculation? Can you please eloborate.

Regards