Refer to my article on October 24th.
So here we have November 2013
The option strategy to be executed on November 21st (Thursday) and to be wound back on Tuesday 26th November 2013 (As options expire on 28th November 2013- Thursday)
The market is always a mystery so we see how well the strategy works!. Review to be done on 26th Nov 2013.
Can there be an options strategy for this last week?
Let us see how it can work;
Bank of Baroda is trading currently around Rs 625-630 . Writing a put options at 600 and call option at 660 at the same time can give a total premium collection of about 11 Rs which equates to Rs.5500/- for one lot of BOB which is 500 stocks.
Exactly on next Tuesday(26th November 2013) this trade should be wound up for loss or gain. Gain could be roughly 2500 to 3000/- for an outlay of 4 sessions.
How did the Bank of Baroda perform between Thursday of the penultimate week of options expiry to the Tuesday before the option expiry day of Thursday for the past one year ? Its something like below ! What is significant of this chart ?
Update on 22 Nov 2013:
On 21st Nov due to heavy volatility in the market the 600 put was quoting at 8+ rs and 640 call quoting around 6+ rs. Combined together writing this combination of sell 600 put and sell 640 gives a option premium collection of 14 Rs so lot of 500 stock = 7,000/-
To be seen on 26th Nov 2013 Tuesday how to wind up the position.
------
Update on 25th Nov 2013:
The stock options 600 put and 640 call navigated in the range of 3.5 on both the sides and could have been successfully closed resulting in gain of 7 points which is Rs.3500/- (50 pecent of writing options premium) and assuming a brokerage of 500 bucks a clean profit of Rs.3000/- could have been the result Good trade for 3 days session ! (21st nov to 25th nov - 3 trading sessions!) - Basically this means the strategy could have been would on 25th nov 2013 as the target is achieved.
cheers
zilebi
(Zilebi are you sleeping?
We cant make head or tail out of the above!)
So here we have November 2013
The option strategy to be executed on November 21st (Thursday) and to be wound back on Tuesday 26th November 2013 (As options expire on 28th November 2013- Thursday)
The market is always a mystery so we see how well the strategy works!. Review to be done on 26th Nov 2013.
Can there be an options strategy for this last week?
Let us see how it can work;
Bank of Baroda is trading currently around Rs 625-630 . Writing a put options at 600 and call option at 660 at the same time can give a total premium collection of about 11 Rs which equates to Rs.5500/- for one lot of BOB which is 500 stocks.
Exactly on next Tuesday(26th November 2013) this trade should be wound up for loss or gain. Gain could be roughly 2500 to 3000/- for an outlay of 4 sessions.
How did the Bank of Baroda perform between Thursday of the penultimate week of options expiry to the Tuesday before the option expiry day of Thursday for the past one year ? Its something like below ! What is significant of this chart ?
Update on 22 Nov 2013:
On 21st Nov due to heavy volatility in the market the 600 put was quoting at 8+ rs and 640 call quoting around 6+ rs. Combined together writing this combination of sell 600 put and sell 640 gives a option premium collection of 14 Rs so lot of 500 stock = 7,000/-
To be seen on 26th Nov 2013 Tuesday how to wind up the position.
------
Update on 25th Nov 2013:
The stock options 600 put and 640 call navigated in the range of 3.5 on both the sides and could have been successfully closed resulting in gain of 7 points which is Rs.3500/- (50 pecent of writing options premium) and assuming a brokerage of 500 bucks a clean profit of Rs.3000/- could have been the result Good trade for 3 days session ! (21st nov to 25th nov - 3 trading sessions!) - Basically this means the strategy could have been would on 25th nov 2013 as the target is achieved.
cheers
zilebi
(Zilebi are you sleeping?
We cant make head or tail out of the above!)
