Day Trading Futures

[pratapvb]

BNF

60-13 range 12111-12162
VAL-VAH 12112-143
2dayvwap 12116

long bias above 12099 (positional) and
intraday short bias till 12130

but once in VAH-VAL / 60-13 range it is sideways

 

[newtrader11]

Hi Guys
I am a new trader. I need some advice.
I made a very stupid mistake with my first trade only .
I bought a call option for nifty@6700 at 3 each yesterday (the idea was it was moving up and down frequently so expected to cut at 3.10 ) but it never reached the target came close few times but i didnt cut the position for that small loss and holded it because of greed and now its hovering at 1.6 , shall i wait till monday, tuesday or cut it immediately?

it looks like its expiring worthless , but there is lot of open interest in this option that is what is making me wonder. Share your views , thx

 

[pratapvb]

Hi Guys
I am a new trader. I need some advice.
I made a very stupid mistake with my first trade only .
I bought a call option for nifty@6700 at 3 each yesterday (the idea was it was moving up and down frequently so expected to cut at 3.10 ) but it never reached the target came close few times but i didnt cut the position for that small loss and holded it because of greed and now its hovering at 1.6 , shall i wait till monday, tuesday or cut it immediately?

it looks like its expiring worthless , but there is lot of open interest in this option that is what is making me wonder. Share your views , thx

it may hover around here only.....there is no new info between now and monday and weekend decay will be there.....but for you now worst case is it will go to zero from 1.6....so you can decide based on this.

also would suggest understand option well before getting into it
look at the many threads....one of mine in that being http://www.traderji.com/options/92743-options-my-way-looking.html

 

[pratapvb]

Further to above post

6 days to expiry and you buy at Rs 3, 6700 when mkt is at 6500 odd

every 30-35pt move every day in favor also will keep the price at Rs 3 only with it being below 6700 expiry

so what you expected to get from this in the next few days?

 

[manishchan]

Hi Guys
I am a new trader. I need some advice.
I made a very stupid mistake with my first trade only .
I bought a call option for nifty@6700 at 3 each yesterday (the idea was it was moving up and down frequently so expected to cut at 3.10 ) but it never reached the target came close few times but i didnt cut the position for that small loss and holded it because of greed and now its hovering at 1.6 , shall i wait till monday, tuesday or cut it immediately?

it looks like its expiring worthless , but there is lot of open interest in this option that is what is making me wonder. Share your views , thx

Buddy.. I think you fell for the low premium price. This is the worst mistake specially when nearing the expiry. I made exactly the same mistake 2 months ago when was newly venturing into Options.

NF has not been able to cross 6600 and correcting from there. So general thought will always be that the 6700 call will go down day by day (considering the NF correction and time decay due to expiry next week). I'm not sure what's ur level of understanding Options is. If you are new, I highly recommend Pratap's thread. As he pointed out, there are multiple threads on Options, but I'm finding it most useful as you can relate to it in the real time.

 

[newtrader11]

Further to above post

6 days to expiry and you buy at Rs 3, 6700 when mkt is at 6500 odd

every 30-35pt move every day in favor also will keep the price at Rs 3 only with it being below 6700 expiry

so what you expected to get from this in the next few days?

The idea was the market was range bound ,and this option was moving in the range 2.8-3.2 for the previous day and the next day too it satrted like this, so i thought i will just buy at 3 and cut at 3.1 but it went against me and moved in the range 2.4-2.85 during the day and i didnt cut it and in the end it went really bad , held it for one day thinking a sprut in nifty will work in bringing the losses down, well now i got rid of it at 1.6, loss of 5k what a bad start

 

[a1b1trader]

Just want to know

Whether it is necessary to add todays data in the charting software.
As I think it will spoil the study of lower time frame like 3/5/15/30 min charts, if added

Comments please

 

[pratapvb]

The idea was the market was range bound ,and this option was moving in the range 2.8-3.2 for the previous day and the next day too it satrted like this, so i thought i will just buy at 3 and cut at 3.1 but it went against me and moved in the range 2.4-2.85 during the day and i didnt cut it and in the end it went really bad , held it for one day thinking a sprut in nifty will work in bringing the losses down, well now i got rid of it at 1.6, loss of 5k what a bad start

buying at 3 and cutting at 3.1?....what is your cost of brokerage + taxes....am sure it is more that 0.1 ....

also option in not only dependent on the price at which NF is trading but also many other factors like time left to expiry etc....so I repeat if trying to trade options be sure you understand the dynamics of it, else you will just add to the statistic of buyers who have their option expire worthless

 

[newtrader11]

buying at 3 and cutting at 3.1?....what is your cost of brokerage + taxes....have sure it is more that 0.1 ....

also option in not only dependent on the price at which NF is trading but also many other factors like time left to expiry etc....so I repeat if trying to trade options be sure you understand the dynamics of it, else you will just add to the statistic of buyers who have their option expire worthless

I do understand options , and all the greeks that govern its price and i did understand that it was in favour of option writer with time running out,
the breakeven by brokerage calculator from my brocker was at 3.02.
My biggest mistake was i traded emotionally and didnt cut the position when it returned back to 2.9 . will never trade in OTM options again

 

[timepass]

disconnection for both NOW and TT