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 Dec 2020)
This strategy is a classic iron condor. It is a 4 leg strategy and strikes are chosen with delta of <10% on put and call side.
THE SET UP
1) Sell 17DEC2020 13050PE@11.35 (1 lot)
2) Buy 17DEC2020 12550PE@2.65 (1 lot)
3) Sell 17DEC2020 13900CE@9.35 (1 lot)
4) Buy 17DecNOV2020 14300CE@2.25 (1 lot)
MARGIN REQUIRED –> ~70,000 INR
EXPECTED MAX PROFIT –> ~1185 INR
** RISK MANAGEMENT – EXIT CRITERIA –> Close the position if loss is 3% of the invested capital **
PAYOFF GRAPH
RESULT (Update for day ending 17 Dec 2020)
Below are the premiums for day ending 07 Dec 2020:
1) Sell 17DEC2020 13050PE@0.05
2) Buy 17DEC2020 12550PE@0.05
3) Sell 17DEC2020 13900CE@0.05
4) Buy 17DecNOV2020 14300CE@0.05
This strategy yielded a profit of 1185 INR (~1.7% returns).
Thanks for sharing this strategy, took the same and made 1.5% profit.
Keep sharing more such profit making strategies.