Option Strategy by Sunil Rai


posted by sunilrai on Sat Jul 06, 2013 09:11 am

#21

Condor

Condors, like butterflies, require you to have an opinion on direction and a price target. Unlike butterflies, you can target a range in which you think the stock will be at expiration. Where a butterfly requires you to sell two options at a central strike price (which also is your price target), a condor could be profitable if the stock expires along a range of prices because it involves selling at two different strike prices. “Butterflies are very pretty and symmetrical; [condors] can be big and gawky. They look like they have trouble even getting up in the air,” Kearney says.

The advantage of a condor compared to a butterfly is it allows you to take a directional play, but it gives you a larger range where you may do pretty well. Like a butterfly, a condor is composed of either all calls or all puts. 

Again, if we take our $63 stock, but this time we think it will be somewhere between $70 and $75 at expiration, a condor can let us maximize profit while limiting risk. To do this, we can buy a 65-70 bull call spread by buying the 65 call and selling the 70 call, and then selling a 75-80 bear call spread by selling the 75 call and buying the 80 call. Profit is maximized if we expire between $70-$75 and our wings give us protection should we miss our mark. Again, our maximum loss is the cost of the condor, plus commissions. 

posted by sunilrai on Sun Jul 07, 2013 08:20 pm

#22

Now my strategy i put first butterfly with strike price 5800 , with cover 3 lots for maintaining risk reward ratio, with given 59 points

on next market move dn side then i book 57 points in 5800ce & make again condor by sell 5900ce, now total point gain 99 but still hold for expectation  that mkt is very soon above 6000 or below 5700 which strike price good for exit strategy  on expiry expectation

(a) expiry between 5800-5900                 total point gain 150

(b)expiry between 5700-5799 & 5901-6000    minmum gain 50 points

(c) expiry below 5700 & above 6000               gain be maximize on closing basis

suggestion for scalp at level 5800 & 5900 give more profit 

posted by sunilrai on Thu Jul 11, 2013 01:22 pm

#23

book part profit to  5800  pe @40,5900 ce @ 107, 6000ce@ 58 & 5700 pe @ 41  total profit 150 points 

posted by sunilrai on Thu Jul 11, 2013 01:27 pm

#24

Only paper trade  make butterfly at strike price 2500  

sell 2500 ce pe @ 198 &146  buy one lot 2700ce @110 & 2300 pe @79

posted by sunilrai on Fri Jul 12, 2013 01:58 pm

#25

As seen in OI decreases in volume in 6000 ce & increase in volume 6200 ce rate decrease , my strategy changed for booking profit in 2lots of 6000 ce @ 59 & 5800 pe 30.6  get 87 point, now  hold 5900 ce 1 lot 6000ce & 3 lot 5700 pe

posted by sunilrai on Thu Jul 25, 2013 09:26 pm

#26

As per closing 5907 , loss 7 point  , now total point profit 80+57 =137 points at last get with invest 59 points , on dated 11th july also get profit 150 points partially, i suggested if get position in option daily check OI in respect of Price

posted by sunilrai on Tue Aug 06, 2013 08:27 am

#27

As per OI in Nifty option sept month increase in 6000 ce & 5500 pe ,  take calender spread of strike 5400 pe & 6100 ce i.e. sell 5400 pe & 6100 ce august series @ 27 & 9, buy 5400 pe & 6100 ce sept series @ 63 &36 , Total cost 63 points with risk of Rs3150/- till 26 sep. Target as risk reward ratio between 1:1.5 to 1:2, S/L not bother about it till aug expiry ,expected expiry this month between 5900 to 6200  

posted by sunilrai on Tue Aug 06, 2013 08:39 am

#28

As per most text books there is an established principle that if the price rises with rise in open interest the market is bullish. However, there is a lacuna in this information. In case of a calendar spread transaction i.e. buy near month future and sell far month future, usually the open interest of the both the position is counted. There will be an increase in the open interest but this could be misleading.In the May 2013 expiry the same strategy was adopted by big players. Because of this reason there was 2.6% price rise in the week ending on 30th May 13 (5 days) but 3.4% fall in next three days of new expiry. It was because of this strategy adopted by big players.

So if your trading decisions are based on price and open interest analysis, please be careful and study month wise open interest too. 

posted by sunilrai on Thu Aug 22, 2013 10:31 pm

#29

Now my strategy  get  5400 pe rate 155 & 73.25 , 6100 ce rate 7.25 & 0.8 , total point now 88 , earn 25 point i.e 1250/- spend just 3150/-

even if my expected expiry is now wrong side, hold it till expiry or sept expiry

posted by sunilrai on Tue Aug 27, 2013 01:36 pm

#30

Book more profit at this stage , call closed on expiry day 12.45 PM 

posted by sunilrai on Thu Aug 29, 2013 08:59 am

#31

As i mentioned about OI in #28 market pull by 2-3% so keep above 6100 ce for 3-6 trading session, or Make STRAP for 3-6 trading session i.e. buy 2 ce & 1 pe of same strike for sept month

posted by rajapvt on Thu Aug 29, 2013 04:02 pm

#32

Sunilrai ji, call was not so clear to me. Can you explain what to buy ant strike price, price.

posted by sunilrai on Thu Aug 29, 2013 10:59 pm

#33

today nifty gain 2.3% , & my strategy call give 161+2 points , total point 100 for just expend 63 , without tension or take bother where mkt goes. Rajaji STRAP making at any strike point , genrally near underlying , in above call strike is 5300 at @ 173 ce & @ 185 pe Total cost 173*2+185= 531 but i  am not take this call because it involve heavy amount & no time decay vaule but it gives also in favor result if market moves +- 50to100 points, similarly STRIP making if u think market in bearish buy 2 pe & 1 ce with same strike 

The strap gives now211*2+126 =548 , i.e 17 points 

posted by sunilrai on Thu Aug 29, 2013 11:11 pm

#34

For this month i take sell 5400 pe @ 162 , buy 5500pe @ 210 & buy 5900 ce 2 lot @ 9 , total 210+18-162=66 points

posted by sunilrai on Mon Sep 02, 2013 10:32 am

#35

The STRAP give 293*2+80=666 points Total profit 666-531=135 points , if any body takes book full  

posted by sunilrai on Mon Sep 02, 2013 10:40 am

#36

Make STRIP at strike price5500 @ ce 148  pe 2*142

posted by sunilrai on Tue Sep 03, 2013 01:41 pm

#37

book profit in STRIP ce @109 pe@ 216 Total point 541-432=109 earn

posted by sunilrai on Fri Sep 06, 2013 09:55 am

#38

Modified call sell 5400 pe @ 162 , buy 5500pe @ 210 & buy 5900 ce 2 lot @ 9  , Now book profit in 5400pe @ 82  & sell one 5900 ce @26,

add new position sell 5600 ce & pe @136 & 145

posted by sunilrai on Wed Oct 23, 2013 10:06 am

#39

turning day buy 6100 pe oct @ 40 till expiry exit if  close nifty spot  6226

posted by manasa on Sat Oct 26, 2013 09:48 am

#40

hello sir is nifty put 6100 still a buy at 36 close on 25th



  • About | Privacy | Terms Of Use | Contact

    Disclaimer

    NiftyPundit.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site. This site and the information included herein is for general information purposes only and does not constitute an offer to sell or solicitation of an offer to purchase any security or any advisory or trading management service described herein. The writers may or may not be trading in the securities mentioned.
© NIFTYPUNDIT.COM 2017. ALL RIGHTS RESERVED