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1/4
A Strategy:
1. Assume I have 20 lakhs.
2. I invested in debt fund, Hdfc corporate bond fund which gave 9.27% CAGR in last 5 years.
3. Took colletaral after 7.5% haircut, so have 18.5 lakhs margin to trade.
4. I trade only on expiry.
A Strategy:
1. Assume I have 20 lakhs.
2. I invested in debt fund, Hdfc corporate bond fund which gave 9.27% CAGR in last 5 years.
3. Took colletaral after 7.5% haircut, so have 18.5 lakhs margin to trade.
4. I trade only on expiry.
2/4
5. I trade negligible risk options. For example, 24000 PE today was trading at Rs 2 and liquid too. For Banknifty to hit 24000, it should hit 2 lower circuits which we all know is impossible.
6. Depending on day's trend and OI data, I sell very very far OTM on that day.
5. I trade negligible risk options. For example, 24000 PE today was trading at Rs 2 and liquid too. For Banknifty to hit 24000, it should hit 2 lower circuits which we all know is impossible.
6. Depending on day's trend and OI data, I sell very very far OTM on that day.
3/4
7. I can sell 1500 quantity with available margin. 1500*2 = 3000
8. Yearly 52 expiries. 52*3000 = 1.56 lakhs = 7.8% returns.
9. So total returns will be 7.8+9.2 =17% per annum which are excellent returns. Even if I sell very very far options that are 1rs, still can get 13%.
7. I can sell 1500 quantity with available margin. 1500*2 = 3000
8. Yearly 52 expiries. 52*3000 = 1.56 lakhs = 7.8% returns.
9. So total returns will be 7.8+9.2 =17% per annum which are excellent returns. Even if I sell very very far options that are 1rs, still can get 13%.
4/4
I know intraday margin will be removed from next year.
Assuming that margin is not removed, What are the issues and risks in this strategy? Getting 13-17% almost risk free looking good on paper.
@itjegan @SarangSood @sanjufunda @jitendrajain
Need your expert opinion.
I know intraday margin will be removed from next year.
Assuming that margin is not removed, What are the issues and risks in this strategy? Getting 13-17% almost risk free looking good on paper.
@itjegan @SarangSood @sanjufunda @jitendrajain
Need your expert opinion.
