Follow up on L&T

L&T has recovered handsomely to 977.9. 920 CALL @ 58.3. It is ideal time to book profit of 18.5*750=13875.

Investment: 29850
Profit: 13875
Days held: 3

Follow up on L&T & ICICI Bank

Follow up on L&T & ICICI Bank.

L&T moved in an undesirable direction and closed at 947, down 16 points from 963. The 920 CALL closed at 33.60, down from 46. It is a good time to buy 1 more lot, so the average price reduces to 39.8. If the stock regains yesterday's close, then we would be able to break even.

ICICI bank closed 1022, 2 points up from previous close. The trade could be closed today with the following results.

BUY 1000 CALL @ 36.00 - SELL 1000 CALL @ 34.60
Profit = -1.40
SELL 1020 CALL @ 26.00 - BUY 1020 CALL @ 21.30
Profit = +4.70

Net profit = 3.30
Investment gain = 825

On the other hand, the trade could be kept for the rest of the week, for a max gain of 2500. I would prefer to book profit, considering the market is in a down trend.

L&T & ICICI Bank

Larsen & Tubro (NSE:LT) has moved from 800 on Oct, 07 to 963 on Oct, 24. I hope the trend would continue next week. To profit most from the trend I suggest to purchase 920 Call @ 46.00. This is a high delta of 82. The call will be held for 1 week. Additional purchases may be done, if the price falls next day.

ICICI bank  has moved from 893 on Oct, 07 to 1020 on Oct, 24. I hope the bank stays above 1020. So i suggest the following trades.

BUY 1000 CALL @ 36.00
SELL 1020 CALL @ 26.00

 The trade is 10 profit/10 loss. The position will be held till expiration next week.

Money management

With this chart we can observe that there is 75% chance of making profit. 12.5% chance of no profit no loss and 12.5% chance of major losses. It is important that the technical study done before implementing this money management strategy should not have false signals with high losses. This strategy covers only false signals with minor losses.

Brokerage on Zerodha 2

• Number of trades - 3
• Quantity bought - 200
• Quantity sold - 200
• Gross total - 57480
• Turnover charges - 45.41
• Stamp charges - 3.45
• Service tax - 13.03
• STT - 5
• Sebi charges - 0.06
• Total brokerage - 60

The brokerage is 0.12% of Gross total and Rs. 60 for 3 trades.

Strategy as of today

Money Invested : 15,000
Instrument : NIFTY Call or Put options with price in range 100-150
Lots : 2
Lot size : 50
Initial setup : Bollinger bands are moving in upwards direction.
Strategy : Buy when price jumps of the middle bollinger band after returning from the top bollinger band.
Target : 10 points
Profit potential : 1000
Recovery : If the trade goes bad, then buy 2 more lots when the price starts to bounce back. Sell of with a loss if the market does not recover at all. 

Brokerage on Zerodha

Yesterday Oct 15, I traded on Zerodha for the first time. My first impression was of a total surprise. I was overwhelmed by the speed of execution of order and the ease of execution. I got carried away and ended up putting on 20 trades. most of them profitable but not worth the effort. All these trades were done in 36 minutes. One thing that I did learn was what the brokerage is charged on Zerodha.

The brokerage is split into 6 parts

• Turnover charges
• Stamp charges
• Service tax
• STT
• Sebi charges
• Total brokerage

To to give numbers to the variables as per yesterdays trades

• Number of trades - 20
• Quantity bought - 800
• Quantity sold - 800
• Gross total - 189317.5
• Turnover charges - 149.56
• Stamp charges - 11.36
• Service tax - 67.93
• STT - 16
• Sebi charges - 0.19
• Total brokerage - 400

The total brokerage is simple Number of trades multiplied by 20.

The rest seem to be function of Gross total. The sum of rest of the charges as a percentage of gross total is 0.129%

Hope these numbers are useful for estimating the profitability. Any comment on how to exactly get the values are welcome.

Nifty trade

Nifty had moved up the earlier significantly the earlier day. This led me to believe that today I should be bullish in my trade. I saw Nifty move up in the  morning and retrace back to 66% levels. But what signalled a buy decision was the sudden upwards movement of the stock in a bearish movement. After purchasing OTM options at 144, I had to wait for couple of minutes for the stock to form a base before climbing up.I put in a sale order at 150, modified it to 155 when the stock was going up and finally booked a profit when the first big red candle showed up on the minute chart. I sold at 150, while I saw a max of 152.75. I was more than happy to book the 600 rupee profit on 2 lots. The stock fell and did not recover till the evening.

Price = 144
Volume = 100
Investment = 14,400
Time held = 10.04 to 10.22 = 16 mins
Profit = 600
ROI = 4.16%
Capital = 100,000
ROC = 0.6%

Brokerage = 144
Service tax = 19.05
STT = 2.55
Total = 165.6

Net profit = 434.4