TRADING PRACTICES - I

AKSHIT BHARDWAJ
FT154064
GAURAV TOLANI
FT153070

Summary
Our team invested in four categories: Crude oil, Euro, Gold Futures and
Nifty options. We made a total profit of 10 lakhs on an investment of 95
lakhs.
Below is the details of our investments: -

Nifty Options
Although we mostly invested in riskless sure-shot trades such as Gold and
Crude Oil, we also decided to balance our portfolio with some risky Nifty
options having volatile trend during the time we started making our
investments. We incurred some losses during this investment but were
able to balance our losses with a profit close to 17k using the buy straddle
strategy.

Strik
e

No of
contra
cts

Buy/S
ell

Call/P
ut

Lot
Size

Quant
ity

BUY

CALL

8600

25

100

SELL

CALL

8600

25

100

BUY

PUT

8600

25

100

SELL

PUT

8600

25

100

SELL

PUT

8350

25

100

BUY

PUT

8350

25

100

SELL

CALL

8700

25

200

BUY

CALL

8700

25

200

SELL

PUT

8550

25

200

BUY

PUT

8550

25

200

SELL

CALL

8700

10

25

250

Premi
um

Turnove Profit/L
r
oss

-14,416.
143.85
06

157.25
1,274.06

-11,329.
113
22

108.1
-550.15

51.4 5,113.46

31.7
1,919.09

18,043.7
90.4
2

92.65
-519.81

17,314.1
86.75
6

75.6
2,162.65

24,271.4
97.25
9

BUY
BUY
SELL
SELL
BUY

CALL
PUT
PUT
CALL
CALL

8700
8550
8550
8700
8700

10
5
5
15
15

25
25
25
25
25

250

1,072.69

92.65

-10,216.
06

125
125

81.5
88.55

375

31,997.1
85.45
4

375

821.61

8,410.59

62.8

BUY

PUT

8550

10

25

250

97.85

SELL

PUT

8550

10

25

250

103.9

-24,499.
60

BUY
SELL

PUT
CALL

8600
8600

10
10

25
25

250
250

27,381.1
109.7
5

-29,865.
119.3
30
143

BUY

CALL

8600

10

25

250

127.7

SELL

PUT

8600

10

25

250

1,433.42

-2,484.1
4

3,733.62
17273.63

Learning
Following is the summary of our learnings: 1. It is always wise to have a mix of things in your portfolio balancing
the risk and returns.
2. Investment should be done by taking all macroeconomic factors into
consideration and our trade should tell the same story as that of the
current ongoing macroeconomic trends.
3. We can use long buy and short sell strategies for commodities that
show clear trends in the market while for the volatile trades we can
use strategies such as straddle and strangle to balance our losses
and gains.