Day Trading Futures

[stock72]

I am not saying why 6300 PE is in discount .. I am saying what 6300 PE discount indicating ...

That is incorrect.

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

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

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

 

[Smart_trade]

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.

There was a swing low at 6155 in 5 min NF chart. Below that it was a short but such moves are sudden and violent and not easy to catch.

Smart_trade

 

[arcus]

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.

CNX Nifty Index = Spot.

The index itself is the spot. What do you think spot means?

 

[arcus]

I am not saying why 6300 PE is in discount .. I am saying what 6300 PE discount indicating ...

The discount is indicating positive theta.

 

[Tlahuicole]

There was a swing low at 6155 in 5 min NF chart. Below that it was a short but such moves are sudden and violent and not easy to catch.

Smart_trade

Yeah ST, NF I checked its there PL is there to reverse but for BNF also PL is there to reverse but its not below MA21 line so not able to reverse as we take entry as per MA21 line .

I missed a good damn move

 

[boarders]

underlying is NIFTY spot for options and therefore base calculations on nifty spot

 

[ananths]

Nifty Spot closed at 6126
NF closed at 6142
6300PE closed at 155

so if we calculate 6300 - 155 = 6145 which is closer to future.

P.S :- I'm not trying to prove anything. I want my doubt to be clarified. I have been calculating it based on Fut...I could be wrong.

 

[Smart_trade]

underlying is NIFTY spot for options and therefore base calculations on nifty spot

All these days options were priced on Nifty futures and hence there was a arbitrage opportunity and many traded that for 25-30 points arbitrage .. Today the premium is lost and options are market to Nifty cash and Nifty futures and nifty cash also almost same at one point. Expiry effect but my experience is this effect comes on last day of the settlement, it has come early this time.

Smart_trade

 

[ananths]

NSE site shows that its based on Nifty spot.

I have no more doubts ..i was wrong

 

[augubhai]

Nifty Spot closed at 6126
NF closed at 6142
6300PE closed at 155

so if we calculate 6300 - 155 = 6145 which is closer to future.

P.S :- I'm not trying to prove anything. I want my doubt to be clarified. I have been calculating it based on Fut...I could be wrong.

Both Futures and Options are based on Spot - the expiry of both is anyway based on Spot.

But for all practical purposes, the Option price are based off the Futures price, and not the Spot. Observe the Option prices whenever there is a large difference between Spot and Futures price, and you will find that the Futures price is a better representation of the mid-point.