The iron condor is a trading strategy for options that uses two spreads, both vertical. Since it’s a spread, It is a non directional strategy. If the price becomes zero at expiration then i will sell tomorrow only. As an example, if my view is that nifty will stay in the range of 5800 and 6200 for this expiry(NOV 2013). I want to write a NIFTY 8600 call(1 lot, qty: 75) at 100/- premium with NRML. ZERODHA - Open Instant Account 5paisa - Flat ₹20 Per Order FYERS - Free Trading with 30 Day Challenge ZERODHA - Open Instant Account 5paisa - Flat ₹20 Per Order FYERS - Free Trading with 30 Day Challenge : Iron condors. An iron condor is a trade of two “credit spreads”, meaning you earn upfront – There is a spread on a call option and one on the put option – sold on any underlying for the same month. Maximum profit is attained when the underlying stock price at expiration is between the strikes of the call and put sold. Those qualities make it the right tool to map your plans for all facets of your life and, further, to check out via on them. Will take some efforts from your side to integrate data. STT is 0.017% of Rs 3lks which is Rs 51, whereas if you had bought and sold an option with premium Rs 100, the turnover would have been Rs 10,000(5000+5000) and STT of Rs 0.85. In PnL (3rd screenshot in this write up) only the Net premium paid is shown and not profit potential. Index Short Guts; Index Long Guts; Index Straddle/Strangle 8. Good morning guys. Banknifty 29737.25 713.05 Indiavix 21.06 0.26 Nifty 13055.15 128.7 Crudeoil 3224.00 29 Naturalgas 202.20 1.1 Reply. As I am a new trader , I am eager to know and plan according to it. There are certain products on Plus which are paid, you can see more here: https://plus.omnesysindia.com/NestPlus/Home/. wish to know ,is there any good material available, and if possible can you provide that, Have you checked out Varsity? 20 per order, hence a net brokerage of Rs. Also suggest you to look at Varsity, we will be starting a module on Options shortly. Suppose I have bought 8400CE @20 on October 29 contract. What is an Iron Condor strategy? There are options with various strike prices. So incase like last week there is 20 % moment and unitech is down suddenly to 18 or below or say even upto 15….would my positions be auto square off…, If I buy a Unitech Future for October @ 20.00 and simultaneously buy Unitech October 20 put say @ 1.55 and sell unitech 25 call @ 0.40, In this case my max loss would be 1.15*17000. 3. Please resolve the above two at the earliest. Till then you’d have to use NSE option chain. Very well explained. Can you please calculate and the show the premium receivable on Nifty 9100CE – Today it closed at 77.05 including the brokerage tax etc. Best Iron Condor Strategy for Income Investors. As always, you will want to check with your brokerage firm to ensure you understand their policies. What is the volume impact on Price of say a 100-lot (5000 contract) trade of Nifty 8000CE if i want to buy at the open and fill the order immediately. For Multi-Leg F&O Strategies Margin Requirement. 3. what is the use of the button PnL on last and best, both seem to be giving the same result. For example Nifty 7500CE was trading at around 200 in morning. Here’s an example, consider Bank Nifty trading at 20000 levels currently, to create Iron Condor Strategy, the following trades needs to be executed. If it closes above, it gets expired worthless. Find following brief on how to use it: 1. In this case the investor loses the premium paid (i.e Rs 25*100 = 2500) which shall be the profit earned by the seller of the Put option.So, if cmp was 350 would the buyer still lose only the premium if yes, who does this remaining loss of (350-300) rest with. Excel To Zerodha; Upstox Tools 63. Also there should be columns for Option Greeks like Delta, Theta, Gamma which are updated in real time with the Option prices. 3. Not decay in stock price, but there is time decay in options premiums for sure. But there are days when market could go up but calls premium could loose you money when the implied volatility drops, for example today, even though market is up call premiums are down. i also don’t have an idea. 1. An Iron Condor is a 4 legged option combination where all legs are bought/sold in the same expiration month. Long Put Option 1. This has been on your list since Last year. I am New to option. Design Own Options Strategy; Weekday Wise Strategies 1. Thanks Nitin, If you give time say next day I can add margin, also would like to know more about opening an account..is there a contact person. Dilip. But I see some trades such as: XYZ purchased NIFTY16JUL8400PE NFO @ ₹ 21.0, and I am unsure where actually this was traded. ok Nitin. Amit, we understand that this is a hedged position and won’t square the positions off intraday. Banknifty 29737.25 713.05 Indiavix 21.06 0.26 Nifty 13055.15 128.7 Crudeoil 3224.00 29 Naturalgas 202.20 1.1 i have a doubt. Start at the futures module. , we would be out of business if we charged brokerage on options the way you have said. So you don’t have to do anything to exercise. You can try options oracle from Samoa sky, it is probably the most widely used. is long call and short put same? This has cost me some money as well !!! If we don’t square off, the exchange would also charge a short margin penalty. Use this tool to help setup option strategies, study the payoff graph and proft trading options at Zerodha. Kindly go through the following scenario: All options on NSE today are european now, which means you can exercise it only on the expiry day. The strategy is called "Iron" as its construction is made with both calls and puts as apposed to a standard Long Condor or Short Condor where the legs are exclusively calls or puts. It will not have any value. But after going through your derivative modules again and again I have learnt a lot specially your shorting OTM call options. And i know call is like long and put is like short position. You can think of this strategy as simultaneously running an out-of-the-money short put spread and an out-of-the-money short call spread.Some investors consider this to be a more attractive strategy than a long condor spread with calls or puts because you receive a net credit into your account right off the bat.. Hi Nitin, Has the option strategy tool been removed in Z trader, I still have it on mine. is not permitted. Rs 20 per executed order or 0.01% of the contract value whichever is lower. The F&O margin calculator does not have Banknifty option (weekly) expiry. 1) why it is added as NIFTY16SEP8800CE , not as NIFTY29SEP8800CE when the expiry is on 29-Sep-2016 ? 4. While trading in Options, in the expiry date of F& O, we had to close the positions of the particular month. 2. Hedging Tools 29. Banknifty 26798.95 485.85 Indiavix 20.50-0.47 Nifty 12263.55 143.25 Crudeoil 2786.00-85 Naturalgas 219.80-1.9 It is not within Pi. Hello sir please make me understand Buy price and buy average price and how is buy average price related to settlement price and why it changes on daily basis of options? Hi sir , for option writing in Bank nifty Weekly Options for overnight Position what is the margin required, i have checked in calulator it is showing around 41000 per lot is this the right margin for overnight Position in option writing ………..and in Upstox the intraday margin for writing options is around 15000 Per Lot but in zerodha there is 27000 Per Lot for mis Order in bank nifty weekly options . Time value decays as and when we get closer to expiry. Do Zerodha provide Span margin on options Ex: Date=25 Jan 13 Nifty=6000 (go to help menu, and click on check for updates) I am New to the F & O trading. And found some errors in the strategy window test where moderately bearish says fairly certain market wont fall..looks like there were some other errors too. Although, the strategy can be constructed with a bullish or bearish bias. Iron Condor is a non-directional option strategy, but with risk controlled as we hedge the position by buying options. Thanks. 2. Does Zerodha does autosquare off incase of heavy moment, If I buy a Unitech Future for October @ 20.00 and simultaneously buy Unitech October 20 put say @ 1.55. So, 6000×50 is 3 lakhs. Nitin , Once again thanks for finding time to reply. An iron condor is typically a neutral strategy and profits the most when the underlying asset doesn't move much. 2. Since the risk is unlimited, a margin is blocked in your trading account similar to futures. I mean If I enter quote like nifty It should give all strikes of calls,puts,all expiries with greeks. Phone:we do not have voice helpdesk,we only have email support system. I want to hold the position for few weeks. Iron Condor Excel Spreadsheet is costs nothing, cross-platform, multipurpose, easy to use, and flexible. Is this for intraday or shall i carry till expiry… If that is for intraday, how much should i have to carry til expiry? But when you measure this against the margin requirement, the ROI flips in favour of the Iron condor. Zerodha Tools 76. Although, the strategy can be constructed with a bullish or bearish bias. Now, when such things happens, who is responsible for all the loss occurring to customers? The iron condor is generally considered a combination of two vertical spreads—a bear call spread and a bull put spread. You and your team never believes in that. Is Iron Condor a Profitable Option Trading Strategy? You’ll always receive credit of (Premium*Qty) to your account. I’d suggest you to read this once, I’d suggest you to read the equity derivative modules on this link. Intraday High leverage with MIS, CO and BO. Monday / Friday Index Strategy; MCX 1. Does it becomes completely zero. Open a new sell order button and mention your price or sell it at market. Banknifty 30211.55 159.15 Indiavix 18.03 0 Nifty 13355.75 97.2 Crudeoil 3379.00-28 Naturalgas 177.50-13.1 Please help me in understanding the technicalities and fundamentals of this. 1. Ppz send me a mail with details how to add it also. if i buy 1 lot of asian paint 860 CE @10 on 09.03.2015 and sold it @ 20 on 25.03.2015. my profit would be 10*500=5000. 1– Is it possible to buy option NIFTY PE 8100 in morning or in noon on Intraday basis and sell it on Next day when there is possibility of further increment ? But here is the way to do this, use product type as MIS (intraday), take all the positions. If I have 1L in my trading account, can I do the following option strategy. What this means is if you buy and sell 1 lot of nifty futures at 6000, the turnover generated is Rs 6lks( 3lks+3lks). This is not in the Indian context. Thread starter Mr.G; Start … Banknifty 28278.80-566.2 Indiavix 20.62-1.41 Nifty 12690.80-58.35 Crudeoil 3114.00-10 Naturalgas 225.50 6.3 Can you help me for the same? I had assumed the brokerage too would be applied on the premium, and hence would be 0.01%*50*(25+30)=Rs. Can you please update the users ( via mail or something ) that weekly options are not working in Pi / Kite , so that they don’t take wrong positions !!! I need to add the option with strike price every time than only i am able to see the rate. STT(Security Transaction Tax charged by the government) for Future is charged on the contract value whereas for options it is charged on the option premium. Cheers.. Hello. The following window opens, follow the steps as shown in the pic: 5. 2—What will be the difference between if in Product Code I select MIS and NRML in terms of validity ? I tried my level best to get hold of you with regards to your software and trading platform issues. It can create confusion especially in BANKNIFTY which has weakly and monthly expiry while NIFTY has only monthly expiry. Please clarify my doubts in your free time. For media queries, contact [email protected], 5. Not for now, it is not available on Zerodha trader now as well. Like an iron butterfly spread, the spread of iron condor strategy contains four legs that mean traders require placing four orders with their broker. Just want to confirm, If I trade a hedge strategy where my maximum loss is predefined, and I want to be in strategy till month end. It is available on Pi, the desktop platform. The pricing of an option depends on a lot of factors. When you're trading options, this is one of the spreads you can trade. How can I sell the lot I bought back at 134? 16 represents year and if it is represented as NIFTY29SEP8800CE how one will know which year it is as nifty has 5 year option contracts at any point of time? 7. 45 each. I’ll be getting the benefit irrespective of what I buy first. Any solutions ? Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. 250. I have around 3300 rs in my account and trying to buy bank nifty 1 rs PE ,lot size is 40 but it is giving the above message. You definitely won’t be disturbing us , But what you said makes sense, we will try to figure something out on this.. Sir, Thanks in advance. Zerodha Tools 76. Could you please tell me how many maximum lots size in nifty or nifty option, one retail trader can place order or can hold. or can you suggest any other which can be integrated with your system for Indian market.. hi sorry i mean to say options strategy tool.. please rectify the same while answering. Being an innovative brokerage firm, I expect you to take much more concern to the options market because why I say is that, I know options market in India is far less superior in innovation than what we see outside (say US) but when a person who wants to think different and do different look upon there must be something that stands out and support him in the endeavour and who knows, where lies the future. Today is was Bank Nifty Weekly expiry, I had tried to take some position but every time my orders, Market Order, Limit Order or SL – Order all were rejected every time there was a message : –, rms:rule: option strike price based on ltp percentage for entity, I called customer care, I have been told that you had set the limit on Bank Nifty weekly option. If you buy using NRML you can hold it till end of expiry, if you buy it as MIS, it gets squared off at 3.20pm. Yep. pls clarify my doubt. Your varsity module helped me clear NISM VIII Equity Derivative in first attempt. I already have acc with zerodha for Day trading. You can hold an options short position until expiry. Thanks to all fellow traders, and the entire trading fraternity Our BankNifty Option Selling Strategy is explained here. please elaborate. We can look at “how to enter” in several different ways. An iron condor is a trade of two “credit spreads”, meaning you earn upfront – There is a spread on a call option and one on the put option – sold on any underlying for the same month. 1. The entire pledge/unpledge costs around Rs 55/scrip. Banknifty 30709.40 447.5 Indiavix 18.92 0.3 Nifty 13529.10 136.15 Crudeoil 3380.00 3 Naturalgas 179.30-2.7 Check this section that will explain you all the option greeks. Will you be updating these pages based on Kite or anyother platform now. An iron condor is an advanced option strategy that is favored by traders who desire consistent returns and do not want to spend an inordinate amount of … .. 5.1 – Background The ‘Bear’ in the “Bear Call Ladder” should not deceive you to believe that this is a bearish strategy. 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