Day Trading Futures

[HEM]

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.

NF :-

BNF:-

HEM

 

[timepass]

That is incorrect.

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

The discount is indicating positive theta.

Yes.. yes.. positive theta

I know that, simplistically put, theta means time decay. What does "positive" theta mean ? What does it imply ? Does it mean that the market may go further down ?

I took it to mean that 6200, 6300 etc.. (whose puts are at or below par) will most probably not be breached in this series.

 

[RAAMAKANT]

Hey Bhagwan....
phirse ye Theta, Gamma, X-Ray, UV ....

 

[Tlahuicole]

Hembhai,

Thanks understood it but my doubt was if we use an MA line and take longs if price above ma system and vice versa today no PL in 5 min charts for reversing the trade . May be it fails on days like this but I guess it will make money in the long run .

 

[josh1]

Guys,

Options of Index are based on Future Price since Spot is not an underlying instrument. If you excercise Index options, you will get money on the basis of future's price.
Options of Stocks are based on Spot/cash price since actual underlying instrument is the stock.

Future's price equals cash price at the end of expiry. Hence at the expiry, there is no difference.

 

[jain.er]

Its not a guranntee that Future price will be equal to spot on expiry it may or may not be equal to spot.

 

[LivetoTrade]

Yes.. yes.. positive theta

I know that, simplistically put, theta means time decay. What does "positive" theta mean ? What does it imply ? Does it mean that the market may go further down ?

I took it to mean that 6200, 6300 etc.. (whose puts are at or below par) will most probably not be breached in this series.

Simply means those Strikes are ITM, and will move with spot price (+/- brokerage + tax).

The time decay will not be a factor in calculating its price

 

[LivetoTrade]

Hey Bhagwan....
phirse ye Theta, Gamma, X-Ray, UV ....

poor Delta, Vega, Rho feel left out that you did not mention about them :rofl: :rofl: :rofl:

 

[RAAMAKANT]

poor Delta, Vega, Rho feel left out that you did not mention about them :rofl: :rofl: :rofl:

Chhodne ke liye pahle pakdana padta hai na..... :lol:
Iss dimag me aisa kuch ghusta hi nahi.... :annoyed:

Oh God, Please, Please don't let anybody start again on such Simple Topic.....

 

[HEM]

Hembhai,

Thanks understood it but my doubt was if we use an MA line and take longs if price above ma system and vice versa today no PL in 5 min charts for reversing the trade . May be it fails on days like this but I guess it will make money in the long run .

Yes, you must ready every time for these type of situations in MA trading technique and it is a very usual part of these types of techniques...



HEM