Stock Options - 26 Nov 2020 Expiry Strategy 03 (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: 22 Nov 2020)

Based on the analysis of stock Tata Motors, the stock is expected to stay neutral to bearish for rest of Nov 2020. Put a covered call (learn more) using the below setup.

 

THE SET UP

1) Sell 26NOV2020 185CE@1 (1 lot = 5700)

2) Buy 26NOV2020 205CE@0.25

 

MARGIN REQUIRED --> ~2,00,000 INR

 

EXPECTED MAX PROFIT --> ~4000- (Expecting the stock to trade below 185 by end of Nov 2020). The stock has remained neutral to bearish through the month/week/day trends.

 

** RISK MANAGEMENT - EXIT CRITERIA --> Exit the position if loss is ~2% of the invested capital.**

 

 PAYOFF GRAPH

 

RESULT (Update for 25 Nov 2020)

Below is the premium for the day ending 25 Nov 2020.

1) Sell 26NOV2020 185CE@0.10 (1 lot = 5700)

2) Buy 26NOV2020 205CE@0.05

 

Total profit = (0.70) *5700 = 3390 INR (~1.9% ROI).

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

Exit the position on 26 Nov 2020.

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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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Stock Options - 26 Nov 2020 Expiry Strategy 02 (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: 15 Nov 2020)

Based on the analysis of stock Adani Ports, the stock is expected to stay neutral for the rest of Nov 2020. Put an iron condor using the below setup.

 

THE SET UP

1) Sell 26NOV2020 330PE@3 (1 lot = 2500)

2) Buy 26NOV2020 310PE@0.95

3) Sell 26NOV2020 395CE@3.8

4) Buy 26NOV2020 420CE@1.2

 

MARGIN REQUIRED --> ~2,55,000 INR

 

EXPECTED MAX PROFIT --> ~11500- (Expecting the stock to trade above 330 and 390 by end of Nov 2020). The stock has remained neutral through the month/week.

 

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

 

 PAYOFF GRAPH

 

RESULT (Update for 20 Nov 2020)

Below is the premium for the day ending 17 Nov 2020.

1) Sell 26NOV2020 330PE@0.25

2) Buy 26NOV2020 310PE@0

3) Sell 26NOV2020 395CE@3.15

4) Buy 26NOV2020 420CE@0.90

 

Total profit = (2.2) *2500 = 5500 INR (~2.1% ROI).

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

Exit the position on 20 Nov 2020. Profit is good and but you can wait till 26 Nov too.

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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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Stock Options - 26 Nov 2020 Expiry Strategy 01 (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: 13 Nov 2020)

Based on the analysis of stock PFC (Power Finance Corporation), the stock is expected to stay bullish for the rest of Nov 2020. Put a vertical spread by selling a put and hedge the position by buying a put.

 

THE SET UP

1) Sell 26NOV2020 95PE@0.6 (1 lot = 6200)

2) Buy 26NOV2020 87.5PE @0.1

MARGIN REQUIRED --> ~54000 INR

 

EXPECTED MAX PROFIT --> ~3000- (Expecting the stock to trade above 95 by end of Nov 2020). The stock has remained bullish through the month/week/day.

 

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

 

 PAYOFF GRAPH

 

RESULT (Update for 17 Nov 2020)

Below is the premium for the day ending 17 Nov 2020.

1) Sell 26NOV2020 95PE@0.25

2) Buy 26NOV2020 87.5PE @0.1

 

Total profit = (0.6-0.25) *6200 = 2170 INR (~4% ROI).

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

Exit the position on 18 Nov 2020. Profit is good and no need to wait till 26 Nov.

 

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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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