NIFTY - 03 Dec 2020 Expiry Strategy01 (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: 25 Nov 2020)

This strategy is based on calendar spread where we choose strikes from two different expiry weeks.

Shorting will be done in the upcoming week expiry and hedging in the week next to that.

 

THE SET UP

1) Sell 03DEC2020 13400CE@20.35 (2 lots in the below example)

2) Buy 10NOV2020 13500CE@34 (1 lot in the below example)

3) Sell 03DEC2020 12400PE@19.15 (2 lots in the below example).

4) Buy 10NOV2020 12100PE@22.45 (2 lots in the below example)

 

MARGIN REQUIRED --> ~1,85,000 INR

 

EXPECTED MAX PROFIT --> ~2500 INR 

  

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

 

PAYOFF GRAPH

 

RESULT (Update for 02 Dec 2020)

Below is the premium for the day ending 02 Dec 2020.

1) Sell 03DEC2020 13400CE@1.20

2) Buy 10NOV2020 13500CE@16.90

3) Sell 03DEC2020 12400PE@0.65

4) Buy 10NOV2020 12100PE@2.75

 

Total profit = 1410 INR (~0.7% ROI).

(Please Note: The above profit is inclusive of brokerage and other charges).

Exit the position on 03 Dec 2020. Profit is OK since we waited till expiry day, should have exited much earlier.

 

 

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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

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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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