iCharts Discussions

[vijayakannan]

dear PSrao

i too feel your observation is correct. there is a small mistake. if suppose nifty expires on 5200 then 5100CE will be worth 100 and 5300put will be worth 100 so we have to shed 200 pts from our credit of 378-200 = our profit of 178 plus whatever the profit or loss in futures.

as per your view, suppose we have shorted 5200call and 5200 put then we will get the full premium of 267 as our profit in options apart from the futures.

This is becos of the high premium of options in current price.

5100 CE is today at 196 . NF spot at 5187 hence premium is 196 -(5187-5100) = 196-87 = 109
5300 PE is at 183. premium is 183 - (5300-5187) = 183-113 = 70
the total premium is 109+70 = 179 only though there is a credit of 378 in the a/c.

but 5200 CE is today at 135. in this premium is 135-(5200-5187)=135-13=122 points premium
and 5200PE is at 132 and the premium is 132-(5200-5187)=132-13=119 pts premium. and the total premium is 132+119 = 251 pts against the credit of 267.

as our aim is to use the full premium decay to our benefit, i too feel shorting ATM calls and ATM puts is the best strategy.

Hansraj, request your views.

[vijayakannan]

suprithvi, if suppose market closes at 4700

then 5200 call will be 0 and 5200 put will be at 500. so the net points in options will be 500-267= loss of 233 points.

but anyway we will be short in nifty below 5150 as part of this strategy by hansraj. hence we will be in profit of 5150-4700= 450 points.

and the net profit will be 450-233 = 217 points profit

[hansraj456]

Hi

I think you all people are wrong. Why are u waiting for expiry. I never wait for expiry. Why should I wait for expiry. I am getting 200 points per two weeks and 400 points per month. I am not concerned, where nifty closes at expiry. just get 200 points in two weeks for sure and exit and make new strategy. I make positions in 1st and 3rd week of every month and that also for selling options of further next month and every strategy ends with 200 points only. People are discussing of expiry of January, but I will exit from Jan options by first week of Jan and make position for feb options. I will never wait for expiry of jan. I am concenred about taking 200 points profits in two weeks. Just encash the sentiment and psychology and get away. That's it. I request all the readers here to do paper work for atleast next 2 months and then let's see.

thanks

[serenshri]

Thanks all Newbies, all have made this forum dynamic

Sridhar

[hansraj456]

Hi All

I am sorry for my harsh comments. Actually, I am concerned to achieve my target and I cannot allow Nifty to decide my fate. I have to decide my fate and the moment I get my target of 200 points in couple of weeks, I simply exit. If you see all my strategies & examples, no where it's mentioned I need to sit and wait where nifty closes and what my profit is. For example Mr. psrao has indicated profit of 267 points profit by 28 Jan. whereas my target is 400 points. I made my first strategy of selling options of Jan. in first week of December. and exited on 21 december, when I got 200 points and again sold other set of options on 21 december and from my 2nd position of december, I am already making 136 points i.e. My total profit from 8 Dec. to 29 Dec is 336 points and still there's possibility of gaining another 64 points. I will exit the moment my profit is 200 points in second position. And I will start selling option of Feb. by first week of January. I am not concerned where nifty closes and what happens to my options. Contracts expire on last Thursday of the month and I generally exit by first week of month.

I have been requesting the readers at this forum to read the strategy and my explanations very very carefully, but I fee people are reading it with half heartedly and giving their comments. I appreciate the efforts of Mr. psrao and as I have told, I am back-testing points suggested by him and I will get back at this forum with complete comparison on the basis of actual data. I have worked on this strategy for so many months and have spent hundreds of hours before making actual investments and even now, I will not hesitate to change my strategy, if other type of position is more profitable. But before taking any decision, I need to study all the aspects, for which I want 1-2 months. Actually, I am a full time employee in a National Financial company and I generally get time at weekends for testing the strategies. However I am already comparing the suggested strategies with my strategy where I am already invested.

Thanks

[psrao]

HI Hans,
I am extreamly sorry for not giving enough time myself to understand ur stratergy. I regret for taking the discussion to different direction.

regards
psaro

[hansraj456]

Hi Mr. psrao

I am very thankful to you that you have saved the healthy discussions to spoil. Let's keep on learning innovative and safest tactics for investment in this violent market.

Thanks a lot & regards

Hans Raj

[hansraj456]

Hi

Profit calculation of hedging position:

Premium of 4800 Call = 403
Premium of 5100 Put = 101
Total Premium = 504
Nifty Future Points gained = 5020 - 5177 = 157
(Future Price of Jan Series as Nifty future rolled-over at same cost)
Points gain at the time of selling both options = 487

Net gain in points 487 - 504 + 157 = 140 Points

Thanks

[harshkapoor3]

Hi Hansraj
as per ur strategy i sold 5000 call and 5300 put (feb) yesterday, and to test ps rao stratey i sold 5200 call and put (feb) also yersterday,, i think i am making more profit in my first position,,,,,,,,,,,,would like to have ur views

[hansraj456]

Hi

Profit calculation of hedging position:

Premium of 4800 Call = 432
Premium of 5100 Put = 78
Total Premium = 510
Nifty Future Points gained = 5020 - 5215 = 195
(Future Price of Jan Series as Nifty future rolled-over at same cost)
Points gain at the time of selling both options = 487

Net gain in points 487 - 510 + 195 = 172 Points

Thanks

[hansraj456]

Hi Harsh

I think you have taken the decision at wrong time. However strategy is fine. Kindly u let me know at what premium u sold the options and what are your levels for hedging in Nifty Future. So that we could calculate the profits very precisely as I am doing (see my previous post).

As you know I am taking two positions in a month, one in first week and second in third week. I feel for strategy in first week, your second call (sell put and call of next month near the current price) should give little more profit. But surely for 3rd week's position, first strategy should give more profits. Let's see as I am also testing both type of strategies. Until I get proper results with proof, I am going ahead with my original plan, but testing other strategies on paper.

Thanks

[hansraj456]

Years come and go, but this year I specially wish for you a double dose of health, wealth and happiness topped with loads of good fortune. Have a Great 2010 ! HAPPY NEW YEAR!!!!

[hansraj456]

Hi All

I am working on a strategy of intraday trading where on an average around Rs.2500-3000 can be earned on every trading day with the capital requirement of Rs.50000. Please wait for few days.

Thanks

[psrao]

[venkchandra]

Hi Hansraj,

Wishing you happy new year.

Can you please let me know what should be Future -Option stratagy for month of January. I would like to go for it on January 4, 2010. New year new begginging.

Please reply before January 4.

thanks

Venkatesh