Day Trading Futures

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pratapvb

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Yes, most probably the markets will fall in that scenario. So it makes sense to buy puts.

But currently the IV are shooting up again thereby making the puts more expensive. So I am not being able to decide about the correct timing for my put trade. :annoyed:

Should I wait till tomorrow, or should I just jump in right now. :confused:
One thing is for sure that I will bet on the down side by buying the puts, even if this bet goes completely wrong.

Is there some way to quantify the negative effect of crash in the put IV, versus the positive effect of crash in the nifty index, on the prices of the Put Premiums. How to quantify these 2 opposite forces and figure out the premium values by changing the IV and Underlying Index values accordingly.

If anyone is aware of such option premium calculators then please suggest.

Thanks
my view at the money straddle should be about 150 with 2 week left for expiry...but is actually 450.....so 300 is extra premium on straddle due to VIX

assuming that it is higher on the put side....I would put the VIX component around 200+ for puts
 

DIVYEDIX

Well-Known Member
Yes, most probably the markets will fall in that scenario. So it makes sense to buy puts.

But currently the IV are shooting up again thereby making the puts more expensive. So I am not being able to decide about the correct timing for my put trade. :annoyed:

Should I wait till tomorrow, or should I just jump in right now. :confused:
One thing is for sure that I will bet on the down side by buying the puts, even if this bet goes completely wrong.

Is there some way to quantify the negative effect of crash in the put IV, versus the positive effect of crash in the nifty index, on the prices of the Put Premiums. How to quantify these 2 opposite forces and figure out the premium values by changing the IV and Underlying Index values accordingly.

If anyone is aware of such option premium calculators then please suggest.

Thanks
I can answer this by remembering what I did on the result day of state elections - I think I shorted calls
 

TradeOptions

Well-Known Member
Since I find it hard to deploy all the 25k risk money in a single trade, therefor I have decided to start building the put positions, one lot at a time. :p

Bought Nifty 6000 Put of June Series to begin with.

 

kiran_thiru

Well-Known Member
nifty trying to cut today's low. if it done we will see that nifty may touch 7090, there after we will see yesterday's gap cover.
nifty future is not going up or down. above 7141, below 7122 give sharp moves.
 
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