Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
re: Day trading Nifty & Banknifty Futures
well.. it made high of 135 before making low of 32 so not much bravery was needed and i dunno how you came to conclusion that a 300 point move was needed to make good money in options... as far as i can see people made good money even for a move of about 100 points before 1100 hr and im sure lots of people made loads of money for the moves after 1100 hr.
If the market didnt fall after 1100 hr and straightaway tested 7700 then how much profit you would have made ? what it says about your conclusion then ?
I think you didnt have a look at intraday chart of the options, please have a look at the various opportunities it presented.
i dont hv that much knowledge in options but i think the inflated iv concept is misunderstood and misused, if prices of underlying move up then so will the price of the option no matter how high the iv is... and when we are talking about high iv please also tell me how high can be a high ?
Well, it did make a low of 32 too 
would have taken a brave soul to hang on, before getting an opportunity to sell at 135 ...
The high IVs ensured that one would need a move of 300+ points in either direction to make some good money on the option trades.
a 300 point move on the index normally yields about 2x to 3x when IVs are not inflated.
would have taken a brave soul to hang on, before getting an opportunity to sell at 135 ...
The high IVs ensured that one would need a move of 300+ points in either direction to make some good money on the option trades.
a 300 point move on the index normally yields about 2x to 3x when IVs are not inflated.
If the market didnt fall after 1100 hr and straightaway tested 7700 then how much profit you would have made ? what it says about your conclusion then ?
I think you didnt have a look at intraday chart of the options, please have a look at the various opportunities it presented.
i dont hv that much knowledge in options but i think the inflated iv concept is misunderstood and misused, if prices of underlying move up then so will the price of the option no matter how high the iv is... and when we are talking about high iv please also tell me how high can be a high ?
re: Day trading Nifty & Banknifty Futures
As soon as there is an agreement between the players of the markets for the price to take a direction one sided , volatility dies drastically and the Options get burnt in this agreement.
When Raghu Ram Rajan presented his first monetary policy Volatility was sky high before the event at 11:00 am . Just after the outcome of policy Volatility broke down violently and Options were burnt within minutes. The down move came after the policy still PE's found it hard to give substantial returns for those who bought before the event.
At the same time just after the Volatility crash when Option premiums seemed to be at the fair price and PE's were bought at this juncture gave good returns as the downmove was huge.
This is my personal trade experience of that event. I took the PE trade after few minutes of policy declaration.
However every event will go the same way can't be contemplated.
trading with call/puts is a headache , I bot puts at top today in the morning but after 50 point rally from bottom they were almost at bot price :annoyed:
yesterday too , I bot calls when 7500- 7550 gave support but then 50-60 point correction came ,
hitting my SL @## and after that 200 point rally , pappu trader ke sath dokha:annoyed:
yesterday too , I bot calls when 7500- 7550 gave support but then 50-60 point correction came ,
hitting my SL @## and after that 200 point rally , pappu trader ke sath dokha
:annoyed:
When Raghu Ram Rajan presented his first monetary policy Volatility was sky high before the event at 11:00 am . Just after the outcome of policy Volatility broke down violently and Options were burnt within minutes. The down move came after the policy still PE's found it hard to give substantial returns for those who bought before the event.
At the same time just after the Volatility crash when Option premiums seemed to be at the fair price and PE's were bought at this juncture gave good returns as the downmove was huge.
This is my personal trade experience of that event. I took the PE trade after few minutes of policy declaration.
However every event will go the same way can't be contemplated.
Last edited:
re: Day trading Nifty & Banknifty Futures
I didnt mean to say that money couldn't be made at all .... however, with inflated IVs, its not a buyers MKT. its a sellers market.
My post was primarily meant for guys who buy and hold options for a larger swing pre event.
This is Vix from Jan 2014 till date. a simple eye ball mk1 analysis tells us that pre events, its been a sellers MKT on NF options ....
I didnt mean to say that money couldn't be made at all .... however, with inflated IVs, its not a buyers MKT. its a sellers market.
My post was primarily meant for guys who buy and hold options for a larger swing pre event.
This is Vix from Jan 2014 till date. a simple eye ball mk1 analysis tells us that pre events, its been a sellers MKT on NF options ....
re: Day trading Nifty & Banknifty Futures
falling vix biggest enemy of option buyers , specially OTM options loose premium very fast.
if you want to make quick money from naked options intraday (not buy & hold type) :
1) your direction sud be right , market must not move opposite as options lose value very fast so SL hit etc.
2) market sud reach your target quickly otherwise again option will start losing value.
3) both these points cant be right always => you will gain once in a while but lose money mostly.(4 years experience doing this , still doing same)
on friday, 7300 PE was at 39 when NF hit 7514, again after some time it was at 39 when NF @ 7497 , later it was at 39 when NF at 7480 :annoyed:
falling vix biggest enemy of option buyers , specially OTM options loose premium very fast.
if you want to make quick money from naked options intraday (not buy & hold type) :
1) your direction sud be right , market must not move opposite as options lose value very fast so SL hit etc.
2) market sud reach your target quickly otherwise again option will start losing value.
3) both these points cant be right always => you will gain once in a while but lose money mostly.(4 years experience doing this , still doing same
)on friday, 7300 PE was at 39 when NF hit 7514, again after some time it was at 39 when NF @ 7497 , later it was at 39 when NF at 7480 :annoyed:
re: Day trading Nifty & Banknifty Futures
.........and it will be 39 when NF=7350
falling vix biggest enemy of option buyers , specially OTM options loose premium very fast.
if you want to make quick money from naked options intraday (not buy & hold type) :
1) your direction sud be right , market must not move opposite as options lose value very fast so SL hit etc.
2) market sud reach your target quickly otherwise again option will start losing value.
3) both these points cant be right always => you will gain once in a while but lose money mostly.(4 years experience doing this , still doing same)
on friday, 7300 PE was at 39 when NF hit 7514, again after some time it was at 39 when NF @ 7497 , later it was at 39 when NF at 7480 :annoyed:
if you want to make quick money from naked options intraday (not buy & hold type) :
1) your direction sud be right , market must not move opposite as options lose value very fast so SL hit etc.
2) market sud reach your target quickly otherwise again option will start losing value.
3) both these points cant be right always => you will gain once in a while but lose money mostly.(4 years experience doing this , still doing same
)on friday, 7300 PE was at 39 when NF hit 7514, again after some time it was at 39 when NF @ 7497 , later it was at 39 when NF at 7480 :annoyed:
re: Day trading Nifty & Banknifty Futures
arey sara zamana dushman hai , option buyers ka, ek to hum small capital wale hain,
upar se puri capital mein jitne lot OTM options aate hain wo kharid lete hain ,
nifty opoosite chali jati hai sab capital zero ho jati hai
.........and it will be 39 when NF=7350
upar se puri capital mein jitne lot OTM options aate hain wo kharid lete hain ,
nifty opoosite chali jati hai sab capital zero ho jati hai
re: Day trading Nifty & Banknifty Futures
Futures pe aa jao TR bhai ... My takleef has gone down significantly since making the switch ...
arey sara zamana dushman hai , option buyers ka, ek to hum small capital wale hain,
upar se puri capital mein jitne lot OTM options aate hain wo kharid lete hain ,
nifty opoosite chali jati hai sab capital zero ho jati hai
upar se puri capital mein jitne lot OTM options aate hain wo kharid lete hain ,
nifty opoosite chali jati hai sab capital zero ho jati hai
re: Day trading Nifty & Banknifty Futures
Cynk Tech stock surges 25,000%
http://money.cnn.com/2014/07/10/investing/cynk-stock-surge/
http://online.wsj.com/articles/sec-...+wsj/xml/rss/3_7011+(WSJ.com:+What's+News+US)
Cynk Tech stock surges 25,000%
http://money.cnn.com/2014/07/10/investing/cynk-stock-surge/
http://online.wsj.com/articles/sec-...+wsj/xml/rss/3_7011+(WSJ.com:+What's+News+US)
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