NIFTY - 12 Nov 2020 Expiry Day Strategy (Closed with profit)

Disclaimer: Investing in stocks/mutual funds or any other instruments are subject to market risks. Any strategies or trades that are described here are only for educational purpose. Please do your own research or consult your financial advisor before investing.

 

THE STRATEGY (DATE: 12 Nov 2020)

Based on the Open Interest chart carefully choose strikes which are little near the money.

Put a simple vertical spread on the PE or CE side with a premium of close to ~3-4 INR. Also hedge the position on PE or CE side with a premium of 0.5 to 1 INR.

This is ideal for expiry days. 

THE SET UP

1) Sell 12NOV2020 12500PE @2.85 (31 lots in the below example)

2) Sell 12NOV2020 12450PE @1.45 (20 lots in the below example)

3) Buy 12NOV2020 12250PE @0.6 (Hedging position, 51 lots in the below example).

 

MARGIN REQUIRED --> ~200000 INR

 

EXPECTED MAX PROFIT --> ~6000 - (Expecting the markets to be in a range between 12600 and 12800).

 

** RISK MANAGEMENT - EXIT CRITERIA --> Rarely you will get a loss, since it is expiry day and all OTM positions will go worthless. Caution - Please watch the OI change closely for any sudden moves.**

 

Result from the trade placed on 12/11/202

 

Profit --> ~6000 INR (~3%)

 

 

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Account opening links:

To open account with zerodha, click here --> https://zerodha.com/?c=BR8317

 

To open account with angel broking, click here --> https://tinyurl.com/y3pqj339

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NIFTY - 12 Nov 2020 Weekly Expiry Strategy03 (Closed with profit)

Disclaimer: Investing in stocks/mutual funds or any other instruments are subject to market risks. Any strategies or trades that are described here are only for educational purpose. Please do your own research or consult your financial advisor before investing.

 

THE STRATEGY (DATE: 11 Nov 2020)

Put a simple short strangle by choosing a premium of 10-15 INR on the put and call side. No need to hedge the position but ensure you take the position around 10AM (the first 30-45 mins, NIFTY would have already moved and will be getting ready to consolidate into a range.

This is ideal for Wednesdays since Theta decay will benefit us.

 

THE SET UP

1) Sell 12NOV2020 12950CE @11.75

2) Sell 12NOV2020 12400PE @10.55

 

MARGIN REQUIRED --> ~75000 INR

 

EXPECTED MAX PROFIT --> Min of ~1500 - (Expecting the markets to be in a range between 10AM - 12PM on Wednesdays)

 

** RISK MANAGEMENT - EXIT CRITERIA --> Close the position if loss is 3% of the invested capital **

 

Result from the trade placed on 11/11/2020

 

Profit --> 1286 INR (~1.7%)

 

 

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Account opening links:

To open account with zerodha, click here --> https://zerodha.com/?c=BR8317

 

To open account with angel broking, click here --> https://tinyurl.com/y3pqj339

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NIFTY - 12 Nov 2020 Weekly Expiry Strategy02 (Exited with loss)

Disclaimer: Investing in stocks/mutual funds or any other instruments are subject to market risks. Any strategies or trades that are described here are only for educational purpose. Please do your own research or consult your financial advisor before investing.

 

THE STRATEGY (DATE: 08 Nov 2020)

Put a simple calendar spread where you are simultaneously running an OTM short put spread and an OTM short call spread. Choose a premium of close to 20 INR on either side and sell the OTM for the current week expiry. Also hedge the position by buying OTM with a premium of <10 INR (>5 and <10) for the next week expiry

 

 

THE SET UP

1) Sell 12NOV2020 11800PE @ 20.7

2) Buy 19NOV2020 11550PE @27.3

3) Sell 12NOV2020 12550CE @13.55

4) Buy 19NOV2020 12700CE @20.25

 

MARGIN REQUIRED --> ~55000 INR

EXPECTED MAX PROFIT --> Min of ~2000 and Max of ~7500 INR - (Expecting the markets will be between 11636 and 12651 at the end of expiry day - Details to calculate range can be found here (click) )

** RISK MANAGEMENT - EXIT CRITERIA --> Close the position if loss is 3% of the invested capital **

 

 

PAYOFF GRAPH

 

 

RESULT (As of 12 Nov 2020):

As mentioned in the exit criteria, position is closed since the loss crossed 3%. Loss with this strategy was ~1650 INR.

 

 

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Account opening links:

To open account with zerodha, click here --> https://zerodha.com/?c=BR8317

 

To open account with angel broking, click here --> https://tinyurl.com/y3pqj339

-------------------------------------------********************--------------------------------------------------------

 

 

NIFTY - 12 Nov 2020 Weekly Expiry Strategy01 (Exited with loss)

Disclaimer: Investing in stocks/mutual funds or any other instruments are subject to market risks. Any strategies or trades that are described here are only for educational purpose. Please do your own research or consult your financial advisor before investing.

 

THE STRATEGY (DATE: 07 Nov 2020)

Put a simple iron condor where you are simultaneously running an OTM short put spread and an OTM short call spread. Choose a premium of close to 20 INR on either side and sell the OTM. Also hedge the position by buying OTM with a premium of <10 INT (>5 and <10).

 

 

THE SET UP

1) Sell 12NOV2020 11800PE @ 20.7

2) Buy 12NOV2020 11550PE @ 9.5

3) Sell 12NOV2020 12550CE @13.55

4) Buy 12NOV2020 12700CE @ 4

 

MARGIN REQUIRED --> ~55000 INR

EXPECTED MAX PROFIT --> ~1500 INR (~2.5% ROI) - (Expecting the markets will be between 11780 and 12570 at the end of expiry day - Details to calculate range can be found here (click) )

 

** RISK MANAGEMENT - EXIT CRITERIA --> Close the position if loss is 3% of the invested capital **

 

PAYOFF GRAPH

RESULT (as of 10 Nov 2020):

Option1: Following the process of exiting if loss is 3%

As mentioned in the exit criteria, position is closed since the loss crossed 3%. Loss with this strategy was ~1650 INR.

Option2: Adjusting the positions to reduce the loss or come out with minimal profit.

•  Exit the CE position  "12550CE SELL" and add new position on PE side "SELL 12200PE @ 7.25 INR" and add a hedge with "BUY 11700PE @  3 INR".
  

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Account opening links:

To open account with zerodha, click here --> https://zerodha.com/?c=BR8317

 

To open account with angel broking, click here --> https://tinyurl.com/y3pqj339

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