iCharts Discussions

[hansraj456]

Hi

I will be giving here Nifty Option sell calls for far month and hedge with Nifty Future. This has 0% risk and expected profit 10 - 30% per month on the invested capital. For 1 lot position for one month you need approx. Rs.75000/-

[hansraj456]

Sell Nifty 4800 Call (Jan) at 255-265 and hold. Go Long if Nifty Fut trades above 5000 and hold till Nifty Fut comes back below 5000

Sell Nifty 5100 Put (Jan) at 220-228 & hold. Go Short if Nifty Fut trades below 4950 and hold till Nifty Fut comes back above 4950

Note :

1. Premium of above options may be beyond the range given above. But the idea is to get minimum 480 points as premium by selling Nifty Options and Nifty levels should be between 4950 and 5000.
2. Sell both Put and Call Options simultaneously and don't try to wait for change in price.
3. You will have to hedge the option with Nifty Future by buying or selling as per conditions. Do it as many times nifty future comes at these levels.
4. Keep aside your sentiments and do it in a disciplined way. You will get good profits.
5. There may be some instances where you may not be able to catch the Nifty Future levels for hedging. To know the experience on how to handle such situation or for any other clarification, you can post here or pm me.

[hansraj456]

I am also posting Stocks Positional Calls in 'Stock' columns of this Forum.

[ConMan]

Hansraj

Tell me how one can make 10%-30% by this strategy of yours???


rgds

[hansraj456]

Give me your email id by sending pm to me. I will forward you excel sheet for last 4 months giving the various trades I have made and you can see while studying the trades. It's very difficult to explain here so many figures and how to co-relate them.

[SwingTrader]

Hansraj,

Please make things clear before you start posting calls here. Also, do not post such irresponsible statements as "0% risk" etc. You are not talking about fixed deposits here, you are trading a combo of options & futures. The risk is always there. Selling a call & buying futures to hedge is not a risk free trade. There is major risk if futures fall beyond a certain level which results in wiping out the amount you received by selling the call (transaction costs are there too). If futures fall beyond this point, there is only loss and no profit.

Please make all scenarios clear to users before you post such calls. This is more important here because we are not talking about trading just stocks or futures where the risk is clear cut.

[hansraj456]

Instead of writing somuch here why don't you give me your email id so that I should send you all the details and fact sheets. You can see yourselves. By raising querries, I can clearly understand that you have not been able to follow the strategy. You have to sell both Put and call and hedge it with Nifty Future Long or short at given levels.

Ok

Let me explain briefly here :

I give you example of last trade :

Date 07.12.2009
Sold 5300 Put and 5000 Call with total premium of 550
Action for Nifty Fut = "Buy at 5190 and Sell at 5130"
Margin for selling options = 54000
Received premium = 27500
Net Investment = 26500
Sold Nifty at 5130
Margin for Nifty = 26000
Total Investment = 26500 + 26000 = 52500
Exited from above call yesterday i.e. 21.12.2009
Bought Both Options at 500 points (total for both)
Bought Nifty at 4980
Got 50 points in Options and 150 points in Nifty Fut
Total Points gained = 200
Total amount gained = 10000
Total trades done in Nifty Future = 4 times
Total brokerage for trading in Options and Future = 900
Net Profit = 10000 - 900 = 9100
Total Investment = 52500
Profit in Percentage = 17.3%

I have been trading with this strategy for last so many months and gaining on regular basis and having sound sleep in night.

[hansraj456]

Hi SwingTrader & QuickGMurugun

You can obtain trading details of last 4 months by giving me your email IDs. People have started trading on this strategy. I am not charging any thing. My moto is to educate common people how to make money

[SwingTrader]

Hansraj,

Just post the details & factsheets here and explain it here itself for everyone's benefit.

Thanks.

[hansraj456]

Hi

It's not possible to paste Excel Sheet here . I could give one simple example only.

[SwingTrader]

You can, of course, atttach a spreadsheet here. Attach & post the spreadsheets and then post explanation. Do this once and people will understand the concept.

We are not comfortable with people giving out email addresses through iCharts as there have been problems before.

Do not ask for email addresses here.

[hansraj456]

Ok. File is attached here.

[SwingTrader]

Thanks. Now users can ask any questions related to this here.

[hansraj456]

Earlier I was making one position per month. The difference of strike price of Call & Put used to be 200 points. But from December (for Jan position) I have changed the strategy and making two positions and difference between strike price is 300 points. Idea behind the strategy is to obtain profit of around 400 points in a month. Earlier I was getting around 300 points per month.

Made one position on 7th December & got 200 points (given in example) and other position made yesterday (given to forum today as I decided to give this strategy on forum today morning). I have already got 28 points by deterioration of time premium i.e. I sold the combo for 487 points and today's last total of it is 459 points.

Thanks

[hansraj456]

Explanation 1 : How to decide what option to sell and when?

Always sell option of next month. Ideal time to sell is first & 3rd week of contract month.

Sell Call of about 100-150 points below the current nifty level and Sell Put of about 100-150 points above the current nifty level.

Check-out the nearest support/resistence levels and decide the levels to go long or short. The difference between short and long level should not be more than 100 points.

Explanation 2 : How this works and gives profit?

Let's discuss the current call given today which in the morning gave 480 points by selling 4800 call and 5100 put of december

Nifty level was around 4970. Today's immediate support was 4950 and resistence 5000

During the next 2-3 weeks nifty either remain between 4950-5000, or go above 5000 or go below 4950 (any number of points) i.e. 3 probabilities are there, either nifty go down or go up or remain between 4950-5000. No other instance can happen. Let's discuss all the probabilities.
1. If nifty goes above 5000 - go long in nifty and hold till it comes below 5000. Because if nifty goes above, premium of call of 4800 will start increasing but we will get more points from Nifty Future and premium of 5100 Put will erode fastly and that will be our profit.
2. If nifty goes below 4950 - go short at 4950 and hold till it comes above 4950. Because if nifty goes below, preimum of put of 5100 will start increasing but we will get more points from Nifty short and preimum of 4800 call will erode fastly and that will be our profit.
3. If nifty comes or remains between 4950 - 5000 after 2-3 weeks or near to expiry of Jan. the premium of both the put and call will erode as happened today. Yesterday the total premium of this combo was 487 points and today it is 459 points. Premium of both will keep on eroding day-by-day if nifty remains at current levels. At the time of expiry if nifty closes below 5000 and above 4950, we will have to give premium of 300 points (difference between strike price of Put and Call sold) and even then, we will get profit of more than 180 points.