diary of a day trader

[prst]

I feel the correction has already started.
daily losing 50 pts ..

 

[aksahu]

very good suggestion, i will also do my homework before plung to the market

 

[saivenkat]

I feel the correction has already started.
daily losing 50 pts ..

I fear that you views on correction is wrong. Market losing 50 odd points or 100 points for one or two days is not a correction at all.

 

[alroyraj]

Whoa...What a day......made 10000/- today..:clap: trading options....
but I hav to say booked early as my call went from 56 to 121..ie 65 points in a day..9 lots bought = # 29500/-....

anyway ..bar bar aaye hazar bar aaye..aisa din ..dali ho ....dali ho......

masters must hav made a fortune today.....

Generally for stocks we have to switch from small time frame to higher time frame but in case of options I do not know if it matters here.
Any strategy you use like monitoring Open Interest (OI) info ? I do not have this support in the PIB so cannot say.

 

[TraderRavi]

Generally for stocks we have to switch from small time frame to higher time frame but in case of options I do not know if it matters here.
Any strategy you use like monitoring Open Interest (OI) info ? I do not have this support in the PIB so cannot say.

I trade options intraday....so all I need is Nifty movements prediction...If NIFTY moving up , then call option..otherwise put options...But the problem is money management is very important here...because in their respective directions call or put option..RISES VERY SLOWLY...but in the opposite direction they fall sharply...I mean if NIFTY goes up than call option rises very slowly but put option falls sharply..and if NIFTY goes down then put option rises very slowly but call option falls sharply...so if your direction is not right then you can be in red very quick....I like options trading but poor money management makes my capital A to A+ then A+ to B...iF YOU CAN GO WITH THE FLOW THEN OPTIONS ARE VERY PROFITTABLE...

 

[deadbrain]

I trade options intraday....so all I need is Nifty movements prediction...If NIFTY moving up , then call option..otherwise put options...But the problem is money management is very important here...because in their respective directions call or put option..RISES VERY SLOWLY...but in the opposite direction they fall sharply...I mean if NIFTY goes up than call option rises very slowly but put option falls sharply..and if NIFTY goes down then put option rises very slowly but call option falls sharply...so if your direction is not right then you can be in red very quick....I like options trading but poor money management makes my capital A to A+ then A+ to B...iF YOU CAN GO WITH THE FLOW THEN OPTIONS ARE VERY PROFITTABLE...

Options is the place where I had lost my money initially. One needs to brush up basics here. In my view, one should always hedge one put option with one call option if going for just buying in options.


When I had invested in put options at 5300, i hedged it with a October expiry 6000 call, investment. 6000 Call was at Rs 12 at that time, and guess what it would be now?

 

[alroyraj]

Options is the place where I had lost my money initially. One needs to brush up basics here. In my view, one should always hedge one put option with one call option if going for just buying in options.


When I had invested in put options at 5300, i hedged it with a October expiry 6000 call, investment. 6000 Call was at Rs 12 at that time, and guess what it would be now?

I did observe buying call and put options of the same contract did show some gain(paper trading) and how one of the options decayed too fast, so until it makes sense to me i will stay away. Isnt the fact that options *correction* do not need margin that makes it possible to earn big and lose big if we leverage or over extend ourselves the main attraction of options trading?

 

[TraderRavi]

Options is the place where I had lost my money initially. One needs to brush up basics here. In my view, one should always hedge one put option with one call option if going for just buying in options.


When I had invested in put options at 5300, i hedged it with a October expiry 6000 call, investment. 6000 Call was at Rs 12 at that time, and guess what it would be now?

it is @ 162 now....but what about puts....

 

[TraderRavi]

Options is the place where I had lost my money initially. One needs to brush up basics here. In my view, one should always hedge one put option with one call option if going for just buying in options.


When I had invested in put options at 5300, i hedged it with a October expiry 6000 call, investment. 6000 Call was at Rs 12 at that time, and guess what it would be now?

I trade intraday ..so need for hedging....but direction should be right most of the time...

 

[alroyraj]

I trade intraday ..so need for hedging....but direction should be right most of the time...

So you mean that in case i know nifty will go up by definitely 20 points it is more profitable to buy the call rather than futures especially after margin (or the lack of it in options) and brokerage (less comparatively for options compared to futures) is considered.