Day Trading Futures

[timepass]

+2

Date		Opening	Profit/loss	Closing
28-Jan		15140	+1584		16724
27-Jan		14981	+159		15140
24-Jan		15132	-151		14981
23-Jan		16317	-1185		15132
22-Jan		16333	-17		16317
21-Jan		15718	+615		16333
20-Jan		15491	+227		15718
17-Jan		15964	-473		15491
15-Jan		17237	-1273		15964
14-Jan		17012	+225		17237
13-Jan		18168	-1156		17012
10-Jan		17524	+644		18168
09-Jan		17101	+423		17524
08-Jan		16752	+349		17101
07-Jan		16593	+159		16752
06-Jan		17189	-596		16593
03-Jan		17583	-394		17189
02-Jan		23046	-5463		17583
01-Jan		22808	+238		23046

 

[augubhai]

+2

Date		Opening	Profit/loss	Closing
28-Jan		15140	+1584		16724
27-Jan		14981	+159		15140
24-Jan		15132	-151		14981
23-Jan		16317	-1185		15132
22-Jan		16333	-17		16317
21-Jan		15718	+615		16333
20-Jan		15491	+227		15718
17-Jan		15964	-473		15491
15-Jan		17237	-1273		15964
14-Jan		17012	+225		17237
13-Jan		18168	-1156		17012
10-Jan		17524	+644		18168
09-Jan		17101	+423		17524
08-Jan		16752	+349		17101
07-Jan		16593	+159		16752
06-Jan		17189	-596		16593
03-Jan		17583	-394		17189
02-Jan		23046	-5463		17583
01-Jan		22808	+238		23046

V shaped reversal? :thumb:

 

[Gandhar.]

V shaped reversal? :thumb:

+2

Date		Opening	Profit/loss	Closing
28-Jan		15140	+1584		16724
27-Jan		14981	+159		15140
24-Jan		15132	-151		14981
23-Jan		16317	-1185		15132
22-Jan		16333	-17		16317
21-Jan		15718	+615		16333
20-Jan		15491	+227		15718
17-Jan		15964	-473		15491
15-Jan		17237	-1273		15964
14-Jan		17012	+225		17237
13-Jan		18168	-1156		17012
10-Jan		17524	+644		18168
09-Jan		17101	+423		17524
08-Jan		16752	+349		17101
07-Jan		16593	+159		16752
06-Jan		17189	-596		16593
03-Jan		17583	-394		17189
02-Jan		23046	-5463		17583
01-Jan		22808	+238		23046

no no abhi toh rocket take off hua hai :thumb:

 

[arcus]

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.

It means that deep in the money European puts do not undergo time decay.

We all know that options undergo time decay (negative theta) but there is one exception and that is deep in the money European puts (they don't lose value but gain value with time).

Refer to Page 354 of the book "Options, Futures, and Other Derivatives" by Hull.

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.

If you exercise the Nifty options, it will be settled based on the spot price. NOT the futures price.

 

[augubhai]

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.

Both Index and Stock Options on NSE are European, though earlier the stock options used to be American. http://www.business-standard.com/ar...le-stock-option-contracts-110102900199_1.html

Check out the different option styles here: http://en.wikipedia.org/wiki/Option_style

If I understand correctly, this means that options can be exercised only on the expiry day, and it is a cash settlement based on the settlement price of the underlying.
http://www.nseindia.com/products/content/derivatives/equities/settlement_price.htm
http://www.nseindia.com/products/content/derivatives/equities/settlement_mechanism.htm

Can somebody confirm that there is no delivery of the underlying during exercise, like in American options, even for stock options?

 

[Smart_trade]

Both Index and Stock Options on NSE are European, though earlier the stock options used to be American. http://www.business-standard.com/ar...le-stock-option-contracts-110102900199_1.html

Check out the different option styles here: http://en.wikipedia.org/wiki/Option_style

If I understand correctly, this means that options can be exercised only on the expiry day, and it is a cash settlement based on the settlement price of the underlying.
http://www.nseindia.com/products/content/derivatives/equities/settlement_price.htm
http://www.nseindia.com/products/content/derivatives/equities/settlement_mechanism.htm

Can somebody confirm that there is no delivery of the underlying during exercise, like in American options, even for stock options?

American options can be cash settled or delivery settled. In India when the stock options used to be American style options, still they were always cash settled ( I definately know this as there were a few excercises assigned to me ) . Now all options are European style, meaning they are excercised only on expiry day and all options are cash settled.

Smart_trade

 

[arcus]

Can somebody confirm that there is no delivery of the underlying during exercise, like in American options, even for stock options?

Yes, stock options in NSE are cash settled.

 

[timepass]

V shaped reversal? :thumb:

no no abhi toh rocket take off hua hai :thumb:

Actually risk aversion on a news event day. 2 trades in BNF, both the times in the right direction, but booked out at 20-30 pts because of volatility, not wanting a single paisa loss.

Still, booked about 200rs. loss in 6200PE later.

 

[arcus]

http://www.bloomberg.com/news/2014-...n-vix-calls-in-day-s-biggest-options-bet.html

 

[TradeJoker]

TP bhai great job, well done