Escape's Options Trading Diary - Phase 2

[DanPickUp]

Hi Dan,

That was Options price chart and not futures, this is from my trading platform.

Let's see how Indian market does tomorrow, it seems it may open negative as Dow Jones is trading 75 points down today.

Regards,
Escape.

Dear Escape

A friend of mine is doing pure intraday option trading and he does it more or less on pure tape reading. Very tough and not my way of trading. He is very successful with that kind of trading.

I am much more in strategies and that is quit an other world of trading.

Market luckily has enough space for every body. For you, for me and for the rest of the traders.

Good trading

DanPickUp

 

[escape]

Bought 2 lots of Nifty 12OCT2012 CE 5600 @ 118.75, SL 112.45, CMP 116.75

 

[escape]

Dear Escape

Let us start the calendar spread now. Let us buy one unit from the 5600 Dec put for 69.00 Rp.

http://i48.tinypic.com/34fe89u.png

Why now? Let us take this simple chart as an example, as we have to start some where. As nothing is perfect in trading, we choose this chart picture to start once with the idea.

http://i48.tinypic.com/nv5s93.png

If we are wrong, we have to find a way out of the situation.

Let us do that beside your regular trading and just keep an eye on it for further purposes. Let it be a paper trade.

Good trading

DanPickUp

Dear Dan,

Placed order @69.00. It is currently trading @72.20. If it moves upside, may buy it market rate. Hope this is OK.

Regards,
Escape

 

[escape]

Bought 2 lots of Nifty 12OCT2012 CE 5600 @ 118.75, SL 112.45, CMP 116.75

SL hit @ 112.25, loss of 6.50 points, less brokerages.

 

[escape]

Bought 2 lots of Nifty 12OCT2012 PE 5800 @ 88.90, SL 82.25, CMP 87.25

 

[escape]

Bought additional 2 lots of Nifty 12OCT2012 PE 5800 @ 96.45

Overall
I have 4 lots of Nifty 12OCT2012 PE 5800 @ 92.70, SL 89.45, CMP 95.70

 

[DanPickUp]

Dear Escape

I am clear that we start with an otm option and not with an itm option. As I recognize a finishing shoulder, head, shoulder pattern in Nifty on the yearly chart, I think we start like that. If market starts again to fall, we are from the begin on the ride and our options has the chance to get itm.

If you want to start directly with itm, then let us take the Dec 5800 put which is around 154.00 Rp. Let's do it first time as a paper trade, as I not trade live in India and not can advise you live all the time through the day.

Good trading

DanPickUp

 

[sumosanammain]

Yearly chart recommendation for a trader trading 1 minute charts. You are going to destroy escapes career.

 

[escape]

Dear Escape

I am clear that we start with an otm option and not with an itm option. As I recognize a finishing shoulder, head, shoulder pattern in Nifty on the yearly chart, I think we start like that. If market starts again to fall, we are from the begin on the ride and our options has the chance to get itm.

If you want to start directly with itm, then let us take the Dec 5800 put which is around 154.00 Rp. Let's do it first time as a paper trade, as I not trade live in India and not can advise you live all the time through the day.

Good trading

DanPickUp

Hi Dan,

I have already bought Dec PE 5600 @ 71, if required I can square-off (CMP 78) and will go for Dec 5800 PUT, once I notice some correction today.

I do understand, it is timezone issue as well as keeping watch on other country market is some what difficult.

Based on your advise, I can go for paper or cash (some limited amount).
I'm comfortable either way.

Regards,
Escape

 

[DanPickUp]

Yearly chart recommendation for a trader trading 1 minute charts. You are going to destroy escapes career.

:lol::lol:

If one minute, one hour, one day, one week, one month, one year: It is still just one.