Day Trading Stocks & Futures

[timepass]

re: Day trading Nifty & Banknifty Futures

Bror. I have more practical knowledge and experience than theory.

Theory wise I dont know many things.

To be frank I know greeks in practical but dont know their names


Actually I know many strategies but I dont know their name

I dont know how to reply properly when any question is asked about the strategies . I am not a good writer or teacher

I know only one thing. I know some strategies and it helps me to make money . Thats all.

Exactly. That's why a separate compilation will help everyone, including yourself. This is the reason I would also like the questions asked by the others about your strategy. One doesn't have to be a good writer or teacher to explain the strategy. Don't worry about the writeup, but a separate discussion will help a lot.

 

[comm4300]

re: Day trading Nifty & Banknifty Futures

Some time back I met a trader from Mumbai and he trades a similar strategy. Assuming Nifty at 6300 , he will sell 3 straddles....6200call/put, 6300 call/put and 6400 call/put. If market goes up then at 6500 he will cover 6200,6300 puts and sell 6500 puts...at 6600 cover 6400 and sell 6600 puts and so on and so forth.He says he makes 8-10 % on his margin money every month...and he has not faced a single loosing month in last 10 months.

Smart_trade

thanks !!!

another new year gift. :thumb:

good stuff to work on this new year.

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

Yes Munde can open a new thread and I will have the relevent posts transferred there.

ST

 

[munde_77]

re: Day trading Nifty & Banknifty Futures

Yes Munde can open a new thread and I will have the relevent posts transferred there.

ST

Thanks Sirji,

But I may not be able to reply all the queries.

Sometimes I will be inactive also sir

It just happened by accident in this thread when you asked the question and what I do, and how i do it

I am not a good teacher and writer like Dan and AW.

Dan and Aw are experts, not me

What is your Opinion Sirji

I have no problem. But I dont know much theorywise

Aap jaise bolthey hain , mein waise karne ke liye thaiyar huin.

Please reply

 

[timepass]

re: Day trading Nifty & Banknifty Futures

ST, some of the posts are :
14939, 14941, 15152, 15145, 15139, 14971, 15156, 15171, 15288, 15316, 15397, 15398, 15400, 15402, 15412, 15735, 15761, 15763, 15783, 15797, 15804, 15809

I have tried to multi-quote them below but have missed some.

I think the moderators can find out where the above posts are quoted and thus find out the queries raised by the other members. So we can have the full conversations.

Please see if you can compile them in one thread with munde_77 as the thread starter.

Thanks.

Sold 300 BNF JAN 11300 PE at 247 and 200 BNF JAN 11600 CE at 272
Sold 300 BNF JAN 11100 PE at 178
Bought 600 BNF JAN 10900 PE at 105
This strategy is 25 % bearish 35 % bullish and 40% neutral

If market closes above 11600 , I will write 11700 or 11800 pe after covering and booking profit in 11300. If market closes below 11300 , i will write 11100 or 11000 ce after coveriing and booking profit in 11600. So likewise i will keep on covering lower strike pe and writing higher strike pe if market rises and if market falls i will keep on covering higher ce and keep on writing lower strike ce

The downside is protected from any unknow crash by ratio backspread. There is difference between Theoritical and real movement of backspread.

Originally Posted by munde_77
Sold 300 BNF JAN 11300 PE at 247 and 200 BNF JAN 11600 CE at 272
Sold 300 BNF JAN 11100 PE at 178
Bought 600 BNF JAN 10900 PE at 105
If market closes above 11600 , I will write 11700 or 11800 pe after covering and booking profit in 11300. If market closes below 11300 , i will write 11100 or 11000 ce after coveriing and booking profit in 11600. So likewise i will keep on covering lower strike pe and writing higher strike pe if market rises and if market falls i will keep on covering higher ce and keep on writing lower strike ce

The downside is protected from any unknow crash by ratio backspread. There is difference between Theoritical and real movement of backspread.
__________________

I always keep roughly 300 points in my hand for adjustment on upperside. Also the ratio is sell 1 lot call otm , sell 2 lot put otm again sell 2 lot far otm put and buy 4 lot far far otm put. i.e by ratio backspread downside is protected from unexpected crash. I always keep 1.5 or 2 times more position in put than call andl alway keep distance of 300 points for adjustment.call 250 + put 250 + 250 = 750/2 = 375 so 11300 - 375 is breakeven downside. Meanwhile I will cover calls and keep on writing lower strike price. by covering upper strike price. I dont know how to express or convince as my english is not good

Mostly I do adjustments between 3.15 and 3.25 or next day between 9.15 and 9.30

I have stopped day trading. I sell and trade mainly options and try to neutralize delta to eat thetha

I am earning without doing anything in the market . If I do something in the market I lose money. So better not to do anything so market gives me bonus just for not doing anything

Hum trade kar chuke hain. SOH till BNF above 11600 or below 11300. of Jan

Just eating thetha by adjusting delta neutral

Dan, There are many strategies including locking profit . It is better than trailing stop loss. In trailing stop , we have already exited even if market reverses after hitting trailing stop. but in options it is good for us if market goes against us and reverses. but in trailing stop , postion already exited. Option still holding postion What is your opinion

I keep on covering lower pe and keep on writing higher pe. Also the ration of pe is more than ce . The ratio of the pe will be 1.5, 1.75 or 2 times the ce. So it will take care. The delta will be more in pe

The IV is alway high in bnf than nifty so more premium for options I will reply more tomorrow

St Sirji,
One can sell 1 otm call and buy 2 far otm call for upperside protection if needed.

If somebody want to take less risk one can use the following strategies

A collar is an options trading strategy that is constructed by holding shares of the underlying stock while simultaneously buying protective puts and selling call options against that holding. The puts and the calls are both out-of-the-money options having the same expiration month and must be equal in number of contracts.

Collar Strategy Construction
Long 100 Shares
Sell 1 OTM Call This month or next Month
Buy 1 OTM Put This month or next Month

I prefer this strategy. You buy put from the premium received for selling next month call

Long 1 ITM Call which have delta amost 1

But 1 Atm Put thismonth

Sell 1 Atm Call/Otm next month

Technically, the collar strategy is the equivalent of a out-of-the-money covered call strategy with the purchase of an additional protective put.

The collar is a good strategy to use if the options trader is writing covered calls to earn premiums but wish to protect himself from an unexpected sharp drop in the price of the underlying security.

The beauty of using a collar strategy is that you know, right from the start, the potential losses and gains on a trade. While your returns are likely to be somewhat muted in an explosive bull market due to selling the call, on the flip side, should the stock heads south, you'll have the comfort of knowing you're protected.

St Sirji

I prefer the following strategy

Buy ITM Call which have delta almost 1
Buy ATM Put This month
Sell ATM/Otm Call Next month

Even there strategies of adjustment for these type of trades here to bring our trade to bring from loss to negligible/small loss.
We need not wait till expiry.

Theory will show different picture. We can exit if market moves around 200 or 300 points on upside. If it goes down , the trade can be further adusted by bear spread etc
There manys ways to adjust. I dont know how to explain it properly

COSTLESS COLLAR, SOUNDS INTERESTING

One can try this one. It works in USA markets. I think it is difficult to work in our market as there is no liquidity for leap calls/puts
http://www.theoptionsguide.com/costless-collar.aspx

This is just an example.
Sell 1 lot Jan Calll 6500 at................
Sell 2 lot Jan Put 6200 at .............
Sell 2 lot Jan Put 6100 at ....................
Buy 4 lot Jan Put 6000 at ..............

We can cover the Lower PE 6200 and bookprofit if nifty closes above 6500 and write 6600 pe. The pe will lose more value than ce if nifty moves up 100 or 150. If more , we will have to do more adjustment.

And we can cover the higher CE of 6500 and book profit if nifty closes below 6200 and write 6100CE. There is nothing to worry much as downside is protected by put back spread ratio. We can keep on doing like that covering lower and writing higher pe if market rises and keep on covering higher ce and writing lower ce.
In more details i will try to explain what i know on Monday.

11300 and 11600 yet not broken

Hope to break the range next week as big boys will be coming next week

Made around 65% profit Net on capital this year . Hope to make atleast 100 % next year

Thanks .
Sirji, I am wondering how traders make 15 to 20% per month.
Hum tho badi muskil se ye achieve kiya hai. But I am very happy
Sirji aap tho ek saal 3 to 4 times kar lethey hongey apni capital
Only Options Sirji, Muje futures suit nahi hota. Pata nahi kyu.
Options mein adjustment karke market ko kuch hadh thak control kar sakthey hain.
Options mein market jyada watch karne ki jarurat nahi. It can be adjusted in the last 15 minutes or in the first 15 minutes.
Humko yehi suit hota hai Sirji

As I mentioned in my earlier posts. My position will be

Sell 1 Lot ATM/OTM call , Sell 2 Lot OTM Put.
Sell 2 Lot Far OTM Put Buy 4 Far FAR OTM Put.

So I am always protected from downside by ratiobackspread. In downtrend Also I keep on booking profits in higher strike calls and keep on writing lower strike calls . For uptrend The ratio of put will always be more than calls. So it will take care of the calls in uptrend. I keep on booking profits by covering lower strikes of put and keep on writing higher strike price.

It is almost hedged all the time by adjustment. Without hedging and adjustment it is very risky to sell options.

I hope you read this post

Originally Posted by Smart_trade
How do you adjust in case the market makes a large swing ? Kuchh gyan banto, Mundeji....

ST

I have faced many times. I get surprised but not nervous as I know It can be managed by adjustment . No need of ratio back spread of call because put ratio is always more than the call ratio 1.5 to 2 times. so even if market moves 500/600 points in 1 lot call and I make loss in 1 lot only but I make profit in 2 lot profit in put.So it can be managed. Recently I faced this situation in Pre-election result day and on post election result day , it was managed easily as the profit in 2 lot manged to cover the loss in 1 lot call. Market can crash any time so we have to be very careful on downside than upside.
Sudden spikes redues the profit potetial but can be managed well

Just watch the market when market spikes 500 points in a day
1 lot call and 2 lot put . The profit of 2 lot put will cover almost all the loss of 1 lot call

Call ratio back spread means more margin, more brokerage, more reduction of profit potential. Overall it will reduce the profit potential .

As the put ratio is always more than call , the upside can be managed.

This strategy has been tested many times when market spiked 500/600 points in a day

No fixed target. I take what market gives. Suppose the market is in very small range for more than a week and IV drops drastically , I exit the position and wait for breakout. I also try to keep nil positions on the day if any very important news is to come. I keep position size small when IV is low.

Lot of margin is blocked as 4 legs are involved

Sirji , Go Slow. Try various strategies on paper.

This strategy is also good. Paper trade it

Slighly Bullish Strategy
Buy ITM Call having delta around 1
Buy PUT ATM/OTM
Sell Call ATM/OTM Next month

Slightly Bearish Strategy.
Reverse

 

[DanPickUp]

re: Day trading Nifty & Banknifty Futures

I am happy to see that people here start to talk about: Making money on margins in option trading. A few times back people here still asked: What is that: Return on margins in option trading?

What happen now is a clear improve in thoughts and knowledge about that specific topic. :thumb::clapping:

 

[timepass]

re: Day trading Nifty & Banknifty Futures

Thanks Sirji,

But I may not be able to reply all the queries.

Sometimes I will be inactive also sir

It just happened by accident in this thread when you asked the question and what I do, and how i do it

I am not a good teacher and writer like Dan and AW.

Dan and Aw are experts, not me

What is your Opinion Sirji

I have no problem. But I dont know much theorywise

Aap jaise bolthey hain , mein waise karne ke liye thaiyar huin.

Please reply

Munde_77, just start a new thread titled "Thoughts and trades on options - Munde_77". The moderators will fill it up, and then we will see.

 

[munde_77]

re: Day trading Nifty & Banknifty Futures

Munde_77, just start a new thread titled "Thoughts and trades on options - Munde_77". The moderators will fill it up, and then we will see.

Let St sir comment it

 

[DanPickUp]

re: Day trading Nifty & Banknifty Futures

Munde_77, just start a new thread titled "Thoughts and trades on options - Munde_77". The moderators will fill it up, and then we will see.

He did not start that instead you forced him to do so :lol:

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

In the new thread Munde can also post how he manages the options when market moves taking BNF trade example which he had posted. This will give realtime inputs about how to manage. The idea is to learn...language, flow does not matter .

ST