Daily Tryst with Nifty

[MurAtt]

That means u r more biased towards an upward movement rather than a downward one ...

If that is what u feel then it is ok.
Your loss in call will be partially made up by the put. In case the mkt moves in your direction then the total profit of the call will be partially negated by the loss in put.

(It would be like u r wanting to buy calls but just in case the mkt moves down then u have one put as a consolation - thats that.)

 

[WOD]

That means u r more biased towards an upward movement rather than a downward one ...

If that is what u feel then it is ok.
Your loss in call will be partially made up by the put. In case the mkt moves in your direction then the total profit of the call will be partially negated by the loss in put.

(It would be like u r wanting to buy calls but just in case the mkt moves down then u have one put as a consolation - thats that.)

Yup...I am biased towards upmove. Only assuming one thing that, most of the market thinks gap created on 18 th may would be filled but you know and I know that market behaves totally to opposite to our belief.

In case that doensent happen, I will be having put with me to negate the loss of calls......

 

[MurAtt]

In case that doensent happen, I will be having put with me to negate the loss of calls......

The loss of 2 calls will not be negated by 1 put - especially being extremely OTM.

 

[WOD]

The loss of 2 calls will not be negated by 1 put - especially being extremely OTM.

so would be it be good idea to buy CE 4600 and PE 4200 in that case......

In this case loss of 2 calls should be negated by put...

 

[praveen taneja]

so would be it be good idea to buy CE 4600 and PE 4200 in that case......

In this case loss of 2 calls should be negated by put...

If you people really want to play strangle then enter in 4400 call put n see the magic :thumb:
one will bcome 50% n other triple after budget
but buy on friday around 3pm:clap:
free advice all mine and profit loss all urs

 

[ag_fx]

If you people really want to play strangle then enter in 4400 call put n see the magic :thumb:
one will bcome 50% n other triple after budget
but buy on friday around 3pm:clap:
free advice all mine and profit loss all urs

If I get it right, to play the strangle, we should be Buying 4400 Call and Buying
4400 Put?
A big move on one side will make that Option tripple(or deep ITM) and anoder one half(or deep OTM).
Since we don t know which way the market will move, we are entering this position.

Am I right?

Happy Trading

 

[MurAtt]

Logic is right BUT just some naming problem here i.e. if I am not wrong - What PT bhai says is Straddle and what Sunil (sir), WOD and me are talking is Strangle.

 

[arnav_rulz]

Not sure, if this is correct approach, but on checking the prices of
Call 4800 @ 60/-
&
Put 4000 @ 72/-
(the two equidistant strikes),

it gives a mild signal of 4000 more likely....

Never observed this before - let' see same time, next week

BTW, it's also the cheapest strangle

PS: Arnav - please pitch in your views

Ahh Sunil Bhai 4000 & 4800 Maybe equidistant but generally what ive seen.. Thr is always a difference btw equidistant Strike price Call/Put and it is generally in favor of Puts..

I dont know the reason behind.. This is one thing in Options i dont get...

Ive tried many logics but none seem to convince me.. the only one that looks a bit satisfactory to me is..

Say Nifty nifty is at 5000.

Equidistant Put are 4500 & 5500

Now if market goes up down 10%.. Then to reach 5500 it has to increase by more than 20%.. Whereas if maket initially goes up by 10% then to reach 4500 it has to fall by less than 20%..

I dont know if you get what im trying to say.. But i feel this is the reason Puts of equidistant prices are generally higher.. I maybe totally wrong as well..

And as for a strangle i would prefer 4100 and 4700 !! i generally feel Options of Known/important Strike Prices **00's/Key Prices(like4800) trade a bit higher and tend to fall very quickly.. But that may just be an assumption.. Risk Factor is the most important factor !!

 

[Sunil]

:fatigue: so early in morning...
no wonder - 5min is caught within a rectangular and narrowing (hoping to be effective) BB

 

[Sunil]

dbl bottom!!!