iCharts Discussions

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

Feeling more bullish on BNF now hence adding one more short put of 19500 Put (Oct) at 158

Current open position

Sold BNF (Oct series) at 19013
Sold 19000 PE (Nov) at 299
Sold 19500 PE (Oct) at 226
Sold 19800 PE (Oct) at 408
Sold 19500 PE (Oct) at 158

P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit
Sold 18500 PE (Oct) at 85 booked at 18 = 67 points profit
Sold 18200 PE (Oct) at 48 booked at 9 = 39 points profit

Cheers
SH[/quote]

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

Bullish feeling continues so booking OTM puts profit and selling more ITM puts.

Booking 19500 PE sold at 226 now at 104 and selling 19700 PE at 182 instead.

Current open position

Sold BNF (Oct series) at 19013
Sold 19000 PE (Nov) at 299
Sold 19800 PE (Oct) at 408
Sold 19500 PE (Oct) at 158
Sold 19700 PE (Oct) at 183

P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit
Sold 18500 PE (Oct) at 85 booked at 18 = 67 points profit
Sold 18200 PE (Oct) at 48 booked at 9 = 39 points profit
Sold 19500 PE (Oct) at 226 booked at 104 = 122 points profit

Cheers
SH

amitagg · Black Belt Joined: 01 Oct 2013 Posts: 4559

Bullish "feeling " continues....... I like it again!.... Interesting adjustments and confidence....

jacky75 · White Belt Joined: 19 Feb 2012 Posts: 47

Thank you for this thread and nice going. clap2

Could you enlighten us with following details for academic interest and learning -

1. What is contribution of theta (any specific figure you checkout for) of each contract in selection of options (like you check delta total as 1 of various contracts)
2. Banknifty is selected over Nifty only because of higher beta or because of weekly options expiry more flexibility in banknifty as against nifty
3. Your view on if this strategy can be applied to any stock/s
4. How about applying this strategy for selection of stocks for high beta-low IV category.

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

making one more adjustment today, booking 19800 PE at 291 and replacing it by selling one more lot of 19500 PE instead at 131

I am also booking the sold 19000 PE (Nov) at 175

Current open position

Sold BNF (Oct series) at 19013
Sold 19500 PE (Oct) at 158
Sold 19700 PE (Oct) at 183
Sold 19500 PE (Oct) at 131

P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit
Sold 18500 PE (Oct) at 85 booked at 18 = 67 points profit
Sold 18200 PE (Oct) at 48 booked at 9 = 39 points profit
Sold 19500 PE (Oct) at 226 booked at 104 = 122 points profit
Sold 19800 PE (Oct) at 408 booked at 291 = 117 points profit
Sold 19000 PE (Nov) at 299 booked at 175 = 124 points profit

Cheers
SH

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

Selling 19700 (Oct) PE at 160.

Cheers
SH

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

BNF kept drifting lower throughout the day and then ran up dramatically in last hour which made me add one more bullish leg by selling 19700 PE

Current open position
Sold BNF (Oct series) at 19013 (LTP 19730, M2M loss 717 points)
Sold 19500 PE (Oct) at 158 (LTP 73, M2M profit 85)
Sold 19700 PE (Oct) at 183 (LTP132, M2M profit 51 points)
Sold 19500 PE (Oct) at 131 (LTP 73, M2M profit 58 points)
Sold 19700 PE (Oct) at 160 (LTP132, M2M profit 28 points)

P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit
Sold 18500 PE (Oct) at 85 booked at 18 = 67 points profit
Sold 18200 PE (Oct) at 48 booked at 9 = 39 points profit
Sold 19500 PE (Oct) at 226 booked at 104 = 122 points profit
Sold 19800 PE (Oct) at 408 booked at 291 = 117 points profit
Sold 19000 PE (Nov) at 299 booked at 175 = 124 points profit

[b]Overall P&L till now = 717-85-51-58-28-64-67-39-122-117-124 = 38 point profit

This shows that even when the markets moved opposite to my original position ( which was bearish), I could turn a 717 point loss in BNF future into an overall profit now. I will hold for more next week as BNF Oct series expires so theta benefit will increase rapidly now.

Cheers
SH

r.kesar · White Belt Joined: 09 Oct 2010 Posts: 4

Amazing. Requires discipline to be right and sit tight.

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

Banknifty futures have slipped into a small discount so great opportunity to rollover and exit BNF fut at 19833 and sell BNF Nov at 19950

This means I have eaten all premium which was there in BNF Oct future as well.

I am also booking both legs of 19700 PE (Oct) at 85 and selling one 20000 PE (Nov) at 410

In effect, all Oct positions closed and Nov series positions opened.

Current open position
Sold BNF (Nov) at 19950
Sold 19500 PE (Nov) at 239
Sold 19500 PE (Nov) at 239
Sold 20000 PE (Nov) at 410

P&L on positions booked
Sold 18800 PE (Oct) at 151 booked at 87 = 64 point profit
Sold 18500 PE (Oct) at 85 booked at 18 = 67 points profit
Sold 18200 PE (Oct) at 48 booked at 9 = 39 points profit
Sold 19500 PE (Oct) at 226 booked at 104 = 122 points profit
Sold 19800 PE (Oct) at 408 booked at 291 = 117 points profit
Sold 19000 PE (Nov) at 299 booked at 175 = 124 points profit
Sold 19500 PE (Oct) at 158 booked at 58 = 100 points profit
Sold 19500 PE (Oct) at 158 booked at 58 = 100 points profit
Sold 19700 PE (Oct) at 183 booked at 85 = 98 points profit
Sold 19700 PE (Oct) at 160 booked at 85 = 75 points profit
BNF (Oct) fut sold at 19015 booked at 19833 = 818 points Loss

P&L on this third trade of Oct (if we just look at booked positions) = 64+67+39+122+117+124+100+100+98+75-818 = 88 points profit

So even when our initial trade was bearish (i had sold BNF) and it was running in a good loss immediately as BNF ran up, I was able to turn a loss making trade into a small profit trade without increasing any risk.

October 2 trades taken and profit 465 points in first trade and 88 points in second trade

Sep took only one trade and profit was 596 points

Now lets see how this strategy works in Nov

Cheers
SH

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

No change in positions today, BNF remains bullish on my charts.

Current open position
Sold BNF (Nov) at 19950
Sold 19500 PE (Nov) at 239
Sold 19500 PE (Nov) at 239
Sold 20000 PE (Nov) at 410

Cheers
SH

EssJay · White Belt Joined: 05 Sep 2012 Posts: 270

Excellent bro. Have been following your trades on paper. Yesterday Took your Nov trade, i.e., sold BNF and also sold commensurate PEs. Let's see how it fares. Kindly keep updating.

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

BNF charts have become bearish now on my charts so time to adjust and add some more bearish legs, selling 19500 CE (Nov) at 366 and 19500 CE (3rd Nov) at 116

Current open position
Sold BNF (Nov) at 19950
Sold 19500 PE (Nov) at 239
Sold 19500 PE (Nov) at 239
Sold 20000 PE (Nov) at 410
Sold 19500 CE (Nov) at 366
Sold 19500 CE (3rd Nov) at 116

Cheers
SH

Alchemist · Yellow Belt Joined: 09 Aug 2010 Posts: 853

BNF has come in neutral zone now so time to lighten up some positions

I am booking BNF future sold at 19950 now at 19588.

I am also booking 19500 CE (8 Nov) sold at 116 now at 139

I am selling 19000 CE (Nov) now at 750 instead.

Current open position

Sold 19500 PE (Nov) at 239
Sold 20000 PE (Nov) at 410
Sold 19500 CE (Nov) at 366
Sold 19500 PE (Nov) at 239
Sold 19000 CE (Nov) at 750

Positions booked already
Sold BNF (Nov) at 19950, exited at 19588 = 362 points profit
Sold 19500 CE (3rd Nov) at 116, exited at 139 = 23 point loss

Cheers
SH

apka · Black Belt Joined: 13 Dec 2011 Posts: 6137

Can I ask how much capital is at stake to execute all the current open trades you have mentioned ?

paa · White Belt Joined: 28 Sep 2010 Posts: 178

Have you sold 19500 PE 2 lots? Please clarify.