Day Trading Futures

[Gandhar.]

http://www.nseindia.com/products/content/derivatives/equities/cnx_nifty.htm

Possible..but until expiry we should calculate option price based on Future.
We are seeing this confusion in TJ every now and then...let me search on net if there is any explanation on this..or if anyone knows please post.

click on options tab

 

[stock72]

How option price related to futures..
both are two different instruments...

Possible..but until expiry we should calculate option price based on Future.
We are seeing this confusion in TJ every now and then...let me search on net if there is any explanation on this..or if anyone knows please post.

 

[Tlahuicole]

ST/seniors,

For pivot based trading is there any way to have taken part in the down fall that happened suddenly today?

Even zooming into 1 min charts from 5 min charts didn't give me an entry as the R:R was not attractive, is there any way to participate in such down falls with small SL and half lots? Any way to detect this downfall is going to continue or so on?

Before also some falls like this had happened but I was able to participate in them by zooming in or they came under regular trades. But today's fall I missed to take part as no entry in regular trade cases and even zooming into lower time frames. Please advice how to approach such trades. Thanks.

 

[stock72]

Nifty spot 6127, 6300PE 157-158..that's some serious discount.

6300- spot - tax = option price as expiry is in just two days .

if price is less to the above people wants to get out ..

 

[arcus]

Option price of Nifty is calculated based on the Spot price.

If the option price is calculated based on futures then it is called options of futures. For example, in US, there are some options of futures contracts.

Some options are based on ETF.

For Nifty options, it is calculated on the basis of the spot price.

 

[kiran_thiru]

Option price of Nifty is calculated based on the Spot price.

If the option price is calculated based on futures then it is called options of futures. For example, in US, there are some options of futures contracts.

Some options are based on ETF.

For Nifty options, it is calculated on the basis of the spot price.

if it is right, what chart we can base to trade options?
spot or future or option. which chart for trade base

 

[arcus]

6300- spot - tax = option price as expiry is in just two days .

if price is less to the above people wants to get out ..

That is incorrect.

The reason is that All deep in the money European puts have positive theta.

 

[arcus]

if it is right, what chart we can base to trade options?
spot or future or option. which chart for trade base

For Nifty options, all calculations are based on Nifty Spot data as that is the underlying instrument.

 

[ananths]

http://www.nseindia.com/products/content/derivatives/equities/cnx_nifty.htm

click on options tab

This link has some info...but its not clear whether spot or Fut..it just says index.

"NSE introduced trading in index options on June 4, 2001. The options contracts are European style and cash settled and are based on the popular market benchmark CNX Nifty index. "

What I think is if you calculate the price based NF price, the price of options looks fine. Hence the assumption.

 

[kiran_thiru]

nifty was setteled at closing price but options were not

nifty open--6145 close---6142
6200ce open--25 close--12.75
6100pe open--32 close---17.50

options loose their premium heavily today