Day Trading Futures

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Somatung

Somatung

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#5,775
#5,775
TradeOptions said:
yes bro, 7000 call almost doubled today.
but I covered that position earlier with a very small loss. :(

I have down bias for the markets, because I do not think NDA will get majority, no matter what the opinion polls are saying, so I was not comfortable in holding the call position.

Today's sharp up move has caught a lot of bears off guard. But strangely, although the calls have gained a lot, but still the puts have lost a very little comparatively. This is confusing me.

On normal days if such an upmove would have happened then the puts too would have crashed, but that is not happening today. Can someone explain what is the reason for the puts to not fall that much today ? I was hoping that I will be able to buy the puts at much cheaper values when such an upmove happens around exit polls, but the put values are continuing to remain high !
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Sad to hear. Sorry for this decision. Here some thing you may like: If you are bearish, then you can play only the put side. How? You surely have seen that I mentioned now a few times the May 6850 put, which I first time spotted at begin of the May series at 231.15. There it was atm as it now is again. Could it be profitable. Oh yes. How? During the down move, there is not much work to do if you not want to actively manage such a position. Now today this long put you hedged with a short put and this short put you can buy back in the last half an hour before market closing or when ever you wished. Now you still can play your bearish idea, even with profit in this up move, as you have your put you believe in it. :) All of this basic way of trading an option can be fine tuned in many details. I wish it is a way you may try the next time with your bearish believes. (Just in case you did not think about this way of being a bearish option trader :)) Take care and enjoy the weekend :)
 
The Disciplined Trader

The Disciplined Trader

Well-Known Member
#5,778
#5,778
i have bank nifty data for last 5 years. system has target of 2% every trade. it has happened first time that 2 targets completed in a day. what a day. :thumb:
my bad luck that i didnt trade banknifty today because of rules but earned jackpot in nifty ..



 
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