Tag: options

Quantitative Option Strategies

The markets have been all around the place in the last few week. And this has created a lot of confusion in the minds of traders too. So, how do you make money in such scenarios?

The best way to be in the markets right now is to get exposure in the derivatives market. Here are a few options trade that made 33%, 19% and 7% when the markets went nowhere last week.

 ACC options position

LT Options position

BATAINDIA Options position

Even when the respective stocks were -1%, -2% and -3.3% there options position have made much more profits.

The ideas based on the algorithms helped us take these positions and carve out the profits even under such market conditions. You too can use these ideas to get more greens in your portfolio.

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Volatility Surface: RELIANCE

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Volatility surfaces is an important trading tool for option traders. Here’s a vol chart of RELIANCE OCT25 options. Note the spike in IV around earnings announcement, the fall-off in IV above and below the ATM strike (800), the spike in vol and the dramatic drop in lambda due the “fat finger” trade on the 5th. [stockquote]RELIANCE[/stockquote]

Our option strategy model, however, is not flashing any profitable trades in this scrip right now, owing to the uncertainty around the trend of the underlying and the high IV around earnings season.

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Options Strategies – Making you “Oprah rich”

The options strategy trades that we put on earlier this month have been total rock stars! Initially surfaced by Stockviz algos, the portfolio is now rolling deep in the green.  

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These option strategies have produced a whopping 350% returns of 58K with the initial investment of 16K.

Our Pro subscribers made out like gangsters. You are welcome!

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Option Strategies – The story so far

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I entered into some options trade, recommended by Stockviz “Option Ideas”. The above trade on TechM long call butterfly was put on 4th Sep. As I go through my options book today looks like all the long volatility trades paid off. Here are a few more that I entered the next day on 5th Sep.

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All in all not a bad week I must say!! I will be counting my blessings and exiting these trades shortly.

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[stockquote]BAJAJ-AUTO[/stockquote] [stockquote]BANKBARODA[/stockquote] [stockquote]KOTAKBANK[/stockquote] [stockquote]TECHM[/stockquote]