Nifty Options Trade – August 2015

Well August being over our Nifty option call worked well with our beautiful strategy that was adopted during January this year (refer the post – Nifty Options Trade – Jan 2015). As like every month our call started with selling index call and put options at the same time at the expiry of July Nifty. Nifty started off with sluggish movement and started changing its normal swing. So, situation warranted for closing off our sell position and to turn the strategy to ‘buy’ both call and put options.

The result is a history and since its a passive call we were missed part of the big profits. Following is what happened in Nifty Options Trade in August.

Nifty Option calls Given for August 2015

First Call for Aug 2015

Day of Entry – 30 July 2015

Call – SELL 8100 PE and 8700 CE at July 2015 expiry

MTM shown is for selling 1000 each of 8100 PE and 8700 CE

Profit realized – Rs.57050

8700CE   8100 PE   MTM
41.85   33.8    
64.65 -22.8 18.85 14.95 -7850
62.1 -20.25 17.55 16.25 -4000
49.75 -7.9 14.9 18.9 11000
59.25 -17.4 10.7 23.1 5700
65.9 -24.05 8.5 25.3 1250
55.15 -13.3 8.9 24.9 11600
36.55 5.3 10.4 23.4 28700
26.05 15.8 13.25 20.55 36350
12.65 29.2 32.8 1 30200
11.1 30.75 26.45 7.35 38100
28.75 13.1 7.9 25.9 39000
16.15 25.7 8.5 25.3 51000
12 29.85 6.6 27.2 57050

Second Call for Aug 2015

Day of Entry – 18.08.2015

Call – BUY 8500 PE and 8500 CE at the close of first call on 18.08.2015

MTM shown is for buying 1000 each of 8500 PE and 8500 CE

Profit realized – Rs.374400

8500 CE   8500 PE   MTM
70.45   89.5    
79.8 9.35 63.8 -25.7 -16350
30.9 -39.55 71.15 -18.35 -57900
11.05 -59.4 184 94.5 35100
4.4 -66.05 350.15 260.65 194600
2.35 -68.1 561.75 472.25 404150
0.65 -69.8 560.1 470.6 400800
0.1 -70.35 534.25 444.75 374400

Day to day MTM in your account depicted in the graph below.

Index option trade

 

First call – Rs.57050 + Second call – Rs.374400 = Rs.431450

Second call is a rare opportunity in the market which appears once or twice in a year. We noticed the first one this year in January and the second one in August. Our strategy to trade this kind of situation worked out remarkably profitable.