Day Trading Futures

[Somatung]

Call is holding for cover if any gap-up opening is there, it will reduce the loss of profit. If gap down then, my puts will take care of call, because its double in quantity.

Over night: Long call and long put and during day active with future trading. Did I get that point right?

Or: Over night short call and short put and during day active with future trading?

 

[RAAMAKANT]

Over night: Long call and long put and during day active with future trading. Did I get that point right?

Or: Over night short call and short put and during day active with future trading?

Yes, first one is right.

 

[Somatung]

Yes, first one is right.

Professional behavior. :thumb::clapping:

 

[DataRam]

On Friday , I managed to sit in front of screen at around 1:15 pm so dropped the idea of trading in NF or BNF & opened up the USDINR chart , looked at it and was straightaway into a long trade with 3 lots . Thought that the pair is going up so try for some up move profit. My gosh , within 3 hrs. the pair was up around 60+ paise and that too without giving any considerable pullbacks . Had a very nice fun ride with the rally. Morning's agony of missing BNF was relieved to quite an extent .

 

[arcus]

Call is holding for cover if any gap-up opening is there, it will reduce the loss of profit. If gap down then, my puts will take care of call, because its double in quantity.

If you are long calls and double the quantity long puts. You have enormous negative theta. If the market goes nowhere you will lose a lot of money.

If it goes up, you will lose money. Because your overall delta is negative.

If it goes down a little, you will lose money. Because the negative theta will overcome the positive gamma.

All in all, you will only make money if the market goes down a lot.

This is not called hedging.

 

[RAAMAKANT]

If you are long calls and double the quantity long puts. You have enormous negative theta. If the market goes nowhere you will lose a lot of money.

If it goes up, you will lose money. Because your overall delta is negative.

If it goes down a little, you will lose money. Because the negative theta will overcome the positive gamma.

All in all, you will only make money if the market goes down a lot.

This is not called hedging.

Thanks Bro, for taking pain but this Theta, Gamma, Xray whatever is, I never understood these things.

The open position is just for Monday opening. I maybe close this within first 15min of opening.

 

[kiran_thiru]

If you are long calls and double the quantity long puts. You have enormous negative theta. If the market goes nowhere you will lose a lot of money.

If it goes up, you will lose money. Because your overall delta is negative.

If it goes down a little, you will lose money. Because the negative theta will overcome the positive gamma.

All in all, you will only make money if the market goes down a lot.

This is not called hedging.

already sgx indicates 90 points down. if it holds monday as gap down opening, confirm he will get good profit in his puts.

 

[kiran_thiru]

Thanks Bro, for taking pain but this Theta, Gamma, Xray whatever is, I never understood these things.

The open position is just for Monday opening. I maybe close this within first 15min of opening.

theta, gamma, delta are really confusing to maximum traders.
some more confusing images

 

[Taurus1]

For me it was another loss day

"Insanity is doing the same thing over and over again and expecting a different result". Bill Clinton

Bad days....psychology disturbed I think.

No offence meant. It is high time you developed your own methods instead of relying on you know what.

 

[timepass]

"Insanity is doing the same thing over and over again and expecting a different result". Bill Clinton



No offence meant. It is high time you developed your own methods instead of relying on you know what.

Frankly, I am not relying on anything, else I might have known what is wrong .

As for Bill Clinton quote above, I am sure that he is not doing the same thing over and over again. He must be doing other ones.. I mean other than Monica