dont buy out the money options

[Czar]

oh sorry dint see he was talking about aug.

 

[pshirurkar]

If you are sure about the trend of market in the next month, then buying out-of -money options for next month will definately be more profitable,

 

[Czar]

point is are you sure ?

 

[fire_gun]

point is are you sure ?

yes i was..i had 4600 call and 4300 put from last7 days..ended up today in profit of 59rs*300=17700rs.including brokerage........entered in 4100 put and 4300 call again... lets see what happens next..4200 is broken down in intraday if it close 4200 then we may see more slide...

 

[bandlab2]

at what rate you bought 4100 put, 4300 call

 

[fire_gun]

at what rate you bought 4100 put, 4300 call

[email protected] 4300call@--148rs

 

[bandlab2]

you will make money when nifty trades above 4580 or below 3920.

we MAY not see nifty outside this range. i woul do the opposite. sell both and pocket 280 rs premium

 

[fire_gun]

you will make money when nifty trades above 4580 or below 3920.

we MAY not see nifty outside this range. i woul do the opposite. sell both and pocket 280 rs premium

lets see where it is headed

 

[AW10]

you will make money when nifty trades above 4580 or below 3920.

we MAY not see nifty outside this range. i woul do the opposite. sell both and pocket 280 rs premium

I think you meant 3820 as lower breakeven point (=4100-280), not 3920.
I am with you on approach to sell the 4100-4300 strangle in 280 Rs. Smarter way will be to buy option (sayy 4500 Call or 4000 Put) further out of money to protect against the sold positions, if you see chances of a particular leg getting in the money.

Happy Trading.

 

[fire_gun]

i made fifty ruppe including brokerage in 4100 put and 4300 call....entered in 4600 call and 4300put