The chart shows combined premium of call and put for different strike.
Strike 6950
Strike 7000
Strike 7050
Strike 7100
Options writing can be risky sometimes.
Thursday, October 27, 2016
Combined Premium of nifty for Mar 2016.
The chart shows combined premium of call and put for different strike.
Strike 6950
Strike 7000
Strike 7050
Strike 7100
Premium decay in nifty for expiry day
Combined premium of 8600 PE+CE.
X axis denotes the time (1 min interval)
8650 CE+ PE
Wednesday, October 26, 2016
Premium Decay in Nifty for Oct 2016
For 8600 Strike Price of Nifty CE+ PE
For 8700 CE+PE
For 8500 PE+CE
The graphs are plotted using 30 min data.
Nifty Oct 30 min chart.
Thursday, September 29, 2016
Is it a right time to buy Alkem Labs?
Tuesday, September 13, 2016
Saturday, June 11, 2016
Short straddle in BHEL and BankNifty
This strategy requires that you sell both call and put options of the same strike price for the same expiry date. This strategy makes profit because of the decay in premium with time. Short straddle can be used if you know where the stock is going to end.
First column shows the underlying price.Other columns shows the premium of call and put options combined for the strike price mentioned in the top.
BHEL
|
125
|
120
|
130
|
115
|
110
|
114.85
|
15.55
|
14.05
|
18.25
|
12.45
|
13.35
|
113.85
|
15.7
|
14.15
|
18.9
|
13.65
|
13.5
|
116.45
|
15.2
|
13.5
|
19.35
|
13.35
|
14.65
|
116.85
|
15.15
|
13.05
|
17.95
|
12.9
|
14.35
|
112.85
|
15.9
|
13.8
|
18.3
|
12.8
|
12.65
|
113.9
|
15.45
|
13.15
|
19.85
|
12.05
|
12.55
|
119.25
|
12.35
|
10.95
|
17.85
|
11.1
|
12.55
|
122.8
|
9.75
|
9.65
|
10.85
|
11.3
|
14.95
|
127.45
|
9.15
|
11
|
9.2
|
14.4
|
18.5
|
127.3
|
8.2
|
10.25
|
8.35
|
14.05
|
17.65
|
133.65
|
10.75
|
14.3
|
7.7
|
18.9
|
23.65
|
132.2
|
9.65
|
13.25
|
6.85
|
17.35
|
20.95
|
132.95
|
9.85
|
14.15
|
6.8
|
17.65
|
23.6
|
128.9
|
6.9
|
10.55
|
5.9
|
14.65
|
19.15
|
127.55
|
5.7
|
8.55
|
5.15
|
12.8
|
18.7
|
125.65
|
4.15
|
6.9
|
5.4
|
10.7
|
15.35
|
129.15
|
4.6
|
9.2
|
3.15
|
15.05
|
20.25
|
127.75
|
3.85
|
8.3
|
2.6
|
13.3
|
19.05
|
125
|
0.1
|
5.05
|
4.9
|
9.85
|
15
|
For 125 strike price, the combined premium went from 15.55 to 0.1.
You can even sell for more than 2-3 strike prices and take the advantage or you can apply this strategy on 2-3 stocks.
For strike price 120, 125 and 130, combined premium = 47.85
and at expiry premium = 10.05.
Short straddle on Bank Nifty
Strike Price CE+PE ====>
| Banknifty |
16500
|
17000
|
17500
|
16716.9
|
849
|
1142
|
991.65
|
16795
|
850
|
1095
|
910.85
|
16543
|
763
|
1083
|
1041.5
|
16388.7
|
739.4
|
1118.8
|
1138.3
|
16274.25
|
702.05
|
1124.1
|
1217
|
16281
|
659.95
|
1039.95
|
1173.35
|
16296.6
|
642.45
|
1017.9
|
1163
|
16686.1
|
621.7
|
803.4
|
858
|
16784.95
|
640.05
|
780.1
|
767
|
16754.45
|
626.55
|
800.9
|
811.25
|
16923.7
|
698.05
|
796.05
|
657
|
16716.9
|
564
|
730
|
829
|
16737.55
|
540.15
|
672.4
|
749.4
|
16762.75
|
526.9
|
644.8
|
746.5
|
16728.95
|
497.3
|
608.6
|
762.45
|
16565.25
|
420
|
602
|
949.6
|
16481.45
|
323
|
481
|
973.55
|
16407.55
|
236.3
|
406.4
|
1096.55
|
16456.65
|
176
|
257
|
991.4
|
16997.45
|
512.45
|
516.25
|
494.1
|
17359.3
|
841.55
|
841.6
|
114.25
|
For 17500, combined premium went from 991 to 114.25.
One of the drawbacks of this strategy is if the stock made a large move in any direction then you will be in loss and it requires a large margin to execute.
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