Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
re: Day trading Nifty & Banknifty Futures
Hi TradeOptions
First of all: This post is just meant of educational purpose and nothing else. Hope you do not mind about that as I see that many here lose when doing option trades. Do not take it personally, as you know me. Now let me post this:
What is the purpose to post this charts? I mean they look fine. But what do you want to say with those charts? Are you pointing in the direction of buying such a July strangle or are you pointing in the direction to sell such a July strangle?
A sell would mean a profit of around 6 INR with out any commission when it is brought home. Do you trade for a profit of 6 INR per one short lot on each side? If so, then you must have a huge trading account to trade enough lots to have enough profit over time and to fill all the margins you need.
If I got that point wrong, then you may want to tell to buy this far otm options, isn't it? This would mean that Nifty needs to move in either direction 150 points to make any profit on the quick side. As Vix is coming down, market will move less. So time decay could become an enemy on this trade and would force the market to even move further in one direction.
Next point left: What about buying just one of your mentioned options and define the invested money in it as stop loss, means: All or nothing. (In this case that would look to me as the best solution when traded the July series or even the idea of a long strangle with the given options. I do talk only about this idea and not about any other ways of trading)
If this is not wanted, then what would be next? Giving some more time to the trade and decide for an August option? The Aug 7000 put is at 13.80 and the Aug 8100 call is at 13.70. IV has also a different of around 4%. So if I would go for a long strangle, then this would look better to me, as I have more time to handle each side according to market moves. If market stays in a range, time decay will be less and as my time frame is bigger, I have a bigger chance that market will really move in one direction.
As told: Just some educational stuff and nothing else. Take care / Dan
Nifty 8000 Call -
Nifty 7000 Put -
Regards
Nifty 7000 Put -
Regards
First of all: This post is just meant of educational purpose and nothing else. Hope you do not mind about that as I see that many here lose when doing option trades. Do not take it personally, as you know me. Now let me post this:
What is the purpose to post this charts? I mean they look fine. But what do you want to say with those charts? Are you pointing in the direction of buying such a July strangle or are you pointing in the direction to sell such a July strangle?
A sell would mean a profit of around 6 INR with out any commission when it is brought home. Do you trade for a profit of 6 INR per one short lot on each side? If so, then you must have a huge trading account to trade enough lots to have enough profit over time and to fill all the margins you need.
If I got that point wrong, then you may want to tell to buy this far otm options, isn't it? This would mean that Nifty needs to move in either direction 150 points to make any profit on the quick side. As Vix is coming down, market will move less. So time decay could become an enemy on this trade and would force the market to even move further in one direction.
Next point left: What about buying just one of your mentioned options and define the invested money in it as stop loss, means: All or nothing. (In this case that would look to me as the best solution when traded the July series or even the idea of a long strangle with the given options. I do talk only about this idea and not about any other ways of trading)
If this is not wanted, then what would be next? Giving some more time to the trade and decide for an August option? The Aug 7000 put is at 13.80 and the Aug 8100 call is at 13.70. IV has also a different of around 4%. So if I would go for a long strangle, then this would look better to me, as I have more time to handle each side according to market moves. If market stays in a range, time decay will be less and as my time frame is bigger, I have a bigger chance that market will really move in one direction.
As told: Just some educational stuff and nothing else. Take care / Dan
re: Day trading Nifty & Banknifty Futures
Some Crystal Ball Gazing
Today we completed 6th day of buy set up in Nifty cash daily charts. The following possibilities are open :
1) This is the most likely market action and we will soon break low of today in next 6 trading days and complete the buy set up....the price damage in this will not be below 7200.
2) Next likely scenario is after we complete buy set up the market will go for a downtrend ( correction) for next 3 weeks and complete the buy countdown/ combo countdown.
3) The least likely possibility is market will not do either 1 or 2 and will just do sideways correction for next 2 months...
It will be interesting to see how the market unfolds...we should be prepared for any of the above playing out....
But the most likely market action on long term is we are in a big bull market which will continue for next 3-4 years and take the stocks to dizzy heights...( with few sharp corrections of course )
We being short term traders, we will turn as per the short term market trends.
Smart_trade
Some Crystal Ball Gazing
Today we completed 6th day of buy set up in Nifty cash daily charts. The following possibilities are open :
1) This is the most likely market action and we will soon break low of today in next 6 trading days and complete the buy set up....the price damage in this will not be below 7200.
2) Next likely scenario is after we complete buy set up the market will go for a downtrend ( correction) for next 3 weeks and complete the buy countdown/ combo countdown.
3) The least likely possibility is market will not do either 1 or 2 and will just do sideways correction for next 2 months...
It will be interesting to see how the market unfolds...we should be prepared for any of the above playing out....
But the most likely market action on long term is we are in a big bull market which will continue for next 3-4 years and take the stocks to dizzy heights...( with few sharp corrections of course )
We being short term traders, we will turn as per the short term market trends.
Smart_trade
re: Day trading Nifty & Banknifty Futures
Thank you for sharing your views Dan brother. You have been so helpful to me, how can I mind it in any way. Please feel free to write your views in future also.
My intention of posting these charts was not to recommend any particular trade. I was following this 8000 Call from last few days and it had REALLY HUGE OI, infact the highest OI for many days in a row. And then I noticed that it started to fall more then 50 % on a daily basis which has resulted it to be worth just Rs 3 so quickly. While I was looking at these charts, I just felt like sharing them on the forum.
With my best regards
Hi TradeOptions
First of all: This post is just meant of educational purpose and nothing else. Hope you do not mind about that as I see that many here lose when doing option trades. Do not take it personally, as you know me. Now let me post this:
What is the purpose to post this charts? I mean they look fine. But what do you want to say with those charts? Are you pointing in the direction of buying such a July strangle or are you pointing in the direction to sell such a July strangle?
A sell would mean a profit of around 6 INR with out any commission when it is brought home. Do you trade for a profit of 6 INR per one short lot on each side? If so, then you must have a huge trading account to trade enough lots to have enough profit over time and to fill all the margins you need.
If I got that point wrong, then you may want to tell to buy this far otm options, isn't it? This would mean that Nifty needs to move in either direction 150 points to make any profit on the quick side. As Vix is coming down, market will move less. So time decay could become an enemy on this trade and would force the market to even move further in one direction.
Next point left: What about buying just one of your mentioned options and define the invested money in it as stop loss, means: All or nothing. (In this case that would look to me as the best solution when traded the July series or even the idea of a long strangle with the given options. I do talk only about this idea and not about any other ways of trading)
If this is not wanted, then what would be next? Giving some more time to the trade and decide for an August option? The Aug 7000 put is at 13.80 and the Aug 8100 call is at 13.70. IV has also a different of around 4%. So if I would go for a long strangle, then this would look better to me, as I have more time to handle each side according to market moves. If market stays in a range, time decay will be less and as my time frame is bigger, I have a bigger chance that market will really move in one direction.
As told: Just some educational stuff and nothing else. Take care / Dan
First of all: This post is just meant of educational purpose and nothing else. Hope you do not mind about that as I see that many here lose when doing option trades. Do not take it personally, as you know me. Now let me post this:
What is the purpose to post this charts? I mean they look fine. But what do you want to say with those charts? Are you pointing in the direction of buying such a July strangle or are you pointing in the direction to sell such a July strangle?
A sell would mean a profit of around 6 INR with out any commission when it is brought home. Do you trade for a profit of 6 INR per one short lot on each side? If so, then you must have a huge trading account to trade enough lots to have enough profit over time and to fill all the margins you need.
If I got that point wrong, then you may want to tell to buy this far otm options, isn't it? This would mean that Nifty needs to move in either direction 150 points to make any profit on the quick side. As Vix is coming down, market will move less. So time decay could become an enemy on this trade and would force the market to even move further in one direction.
Next point left: What about buying just one of your mentioned options and define the invested money in it as stop loss, means: All or nothing. (In this case that would look to me as the best solution when traded the July series or even the idea of a long strangle with the given options. I do talk only about this idea and not about any other ways of trading)
If this is not wanted, then what would be next? Giving some more time to the trade and decide for an August option? The Aug 7000 put is at 13.80 and the Aug 8100 call is at 13.70. IV has also a different of around 4%. So if I would go for a long strangle, then this would look better to me, as I have more time to handle each side according to market moves. If market stays in a range, time decay will be less and as my time frame is bigger, I have a bigger chance that market will really move in one direction.
As told: Just some educational stuff and nothing else. Take care / Dan
My intention of posting these charts was not to recommend any particular trade. I was following this 8000 Call from last few days and it had REALLY HUGE OI, infact the highest OI for many days in a row. And then I noticed that it started to fall more then 50 % on a daily basis which has resulted it to be worth just Rs 3 so quickly. While I was looking at these charts, I just felt like sharing them on the forum.
With my best regards
re: Day trading Nifty & Banknifty Futures
@ST
wat I hav obsrvd all dis yrs is dat d mkt has a definate habit of rewrding decently short term bulls if positions/investments r enterd in d months of MARCH,JUNE,SEP,DEC albeit aftr confirming wid TA.d reason being xpectations,manipulation,discountng d qtrly results in advance n offloading jst a day prior 2 d results.
@ST
wat I hav obsrvd all dis yrs is dat d mkt has a definate habit of rewrding decently short term bulls if positions/investments r enterd in d months of MARCH,JUNE,SEP,DEC albeit aftr confirming wid TA.d reason being xpectations,manipulation,discountng d qtrly results in advance n offloading jst a day prior 2 d results.
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