Event Based Option Trading

[kiranjakka]

What doe's it mean in English?

hey i am sorry i didnt know that you dont speak hindi, i mean to say we are like brothers and i am a male since i liked that picture i made it my avatar

thank you

 

[psvaja]

hi got your point but dont you think that calendar spreads are very risky if IV increases and we are out of the tight range 5350-5400

Hi,

Next month Vega is always higher than current month. so increase in IV will benifit your position. Incase of breakout, you need to adjust position based on your further outlook. Adsjustment is an art & one can only learn through practical experiance. I like the way dan sheridan adjusts calander spreads. Just google dan sheridan calendar spread adjustment.. and you will find lots of pdf files as well as videos. prior requirement is, basic & clear understanding of options greek i.e. delta, theta, gama, vega. I am having some pdf files you wish i can upload somewhere & give you link.

Pravin

 

[manojborle]

Hi,

Next month Vega is always higher than current month. so increase in IV will benifit your position. Incase of breakout, you need to adjust position based on your further outlook. Adsjustment is an art & one can only learn through practical experiance. I like the way dan sheridan adjusts calander spreads. Just google dan sheridan calendar spread adjustment.. and you will find lots of pdf files as well as videos. prior requirement is, basic & clear understanding of options greek i.e. delta, theta, gama, vega. I am having some pdf files you wish i can upload somewhere & give you link.

Pravin

it would be very grateful of you if you can upload the files, thanks in advance

 

[kiranjakka]

Hi,

Next month Vega is always higher than current month. so increase in IV will benifit your position. Incase of breakout, you need to adjust position based on your further outlook. Adsjustment is an art & one can only learn through practical experiance. I like the way dan sheridan adjusts calander spreads. Just google dan sheridan calendar spread adjustment.. and you will find lots of pdf files as well as videos. prior requirement is, basic & clear understanding of options greek i.e. delta, theta, gama, vega. I am having some pdf files you wish i can upload somewhere & give you link.

Pravin

why dont you post the link here it will benefit everybody

 

[kiranjakka]

Panel may meet next week to discuss FDI

The UPA coordination committee is expected to meet early next week — either on August 22 or 23 — to work out a roadmap for reforms, in what may set the stage for opening up civil aviation and multi-brand retail to foreign players.

West Bengal chief minister Mamata Banerjee, the biggest hurdle to opening up, is expected to attend the meeting with the Congress reaching out to her to soften her opposition to the two proposals that have been awaiting consensus since last November.

The government wants to set the stage for announcements in early September in an effort to change the perception about the government's seriousness on getting the economy back into shape though a series of reforms. In any case, the calculation in the government is that it has a five-week window from September 7, when the monsoon session ends, to October 15, the expected date for announcement of elections in Gujarat and Himachal Pradesh, to put in place these measures. Along with the FDI package, the government is also hoping to put together a revised roadmap for fiscal consolidation based on inputs it receives from a panel comprising former finance commission chief Vijay Kelkar, economist Indira Rajaraman and former expenditure secretary Sanjeev Mishra.

On August 10, TOI was the first to report that a UPA coordination committee was being convened to evolve a consensus on FDI in retail.

situation
1.buy call option of pantaloon 170 which closed at 2rs
2.buy 400 call option of jetairways which is in ban period now for trading once the ban is lifted around 1rs to be implemented based on news

 

[timepass]

Power tariffs are going up everywhere. Maharashtra recently approved of 16% hike in power tariff. There are TV reports of meeting between power companies and the government officials in Gujarat. Maybe this is a good time to look up Torrent Power, which is a very good scrip anyway. It is trading at multi year lows.

MERC approves power tariff hike by MSEDCL
Press Trust of India / Mumbai August 16, 2012, 22:05

Maharashtra power regulator MERC today approved an overall increase of 16.48 per cent in average tariff charged by state-owned utility MSEDCL.

The revised tariff by the Maharashtra State Electricity Distribution Co that has come into effect retrospectively from August 1, would affect over 2 crore power consumers in the state.

"The Commission has approved an overall increase in average tariff of 16.48 per cent against 17.68 per cent sought by MSEDCL," Maharashtra Electricity Regulatory Commission (MERC) said in its order.

"The increase in tariff is primarily on account of rise in power purchase expenses, which have gone up primarily due to rise in fuel prices," MERC said.

MSEDCL, the state power distribution firm, had filed a petition before the Commission seeking approval for average revenue requirement (ARR) for FY2012-13 of Rs 50,750 crore. MERC, however, has approved ARR of Rs 48,926 crore.

As per the revised tariff order, the MERC has increased the fixed charge for below poverty line consumers from Rs 3 per month to Rs 10 while reducing the energy charge from 0.89 paise to 0.76 paise per unit.

For domestic consumers under the category 0-100 units and 100-300 units, the tariff has been revised to Rs 3.36 per unit from Rs 2.82 and from Rs 5 to Rs 6.05, respectively.

For residential consumers under the category of 301-500 units and 501-1000 units, the tariff has been revised from Rs 7.15 per unit to Rs 7.92 and from Rs 8.29 to Rs 8.78, respectively.

MERC has also approved an increase in fixed charge for single phase payable by the residential consumers from Rs 30 to Rs 40 per month, while for three phase, it has been revised to Rs 130 against Rs 100 per month.

For units consumed above 1,000 units, the tariff has been increased from Rs 8.55 to Rs 9.50 per unit.

The Commission has approved an average 7 per cent increase in tariff for non-domestic consumers from Rs 9.15 to Rs 9.78 per unit.

However, the Commission has introduced a provision under which all LT commercial and LT industrial consumers consuming less than 300 unit per month would be allowed to avail tariff as per LT residential category.

"This initiative will ensure hassle-free power supply at affordable rates for people carrying out professional or small commercial activities out of their residential premises and small commercial and industrial units. This provision will benefit about 3.5 lakh consumers," the order said.
http://www.business-standard.com/generalnews/news/merc-approves-power-tariff-hike-by-msedcl/44928/

 

[psvaja]

why dont you post the link here it will benefit everybody

Here is the link-

1. Articles of Dan sheridan & others

https://dl.dropbox.com/u/98842493/Articles.zip

2. pdf slides of Dan sheridan - calendar spreads

https://dl.dropbox.com/u/98842493/Dan Sheridan_Calendar Spreads.zip

3. pdf slides of Dan sheridan - Iron Condor

https://dl.dropbox.com/u/98842493/Dan Sheridan_Iron Condor.zip

4. All other slides of Dan sheridan

https://dl.dropbox.com/u/98842493/Dan Sheridan.zip

I hope this will help.

Pravin

 

[DanPickUp]

Dear Psvaja

Thanks to mention Dan Sheridian and thanks to post all that files from your personal collection.

What I miss from your side is to tell the readers here, that he is a pro at the CME in the USA. The CME offers all what ever can be dreamed off on options and this is not the case in Indian market.

If Indian newbies are now going through all that stuff you nicely posted, they will experience a lot of confusion as what DS shows is done at the CME.

All what you posted has the level of basic stuff over there and already may not even can be trade at toll in your market.

Also DS would never ever show how to trade advanced stuff for free.

This just to inform the people here which do not know DS on a better level. So do not start to think that this is the holy grail in option trading. It is just basic stuff from an other trading world and a lot of stuff which not even can be traded in Indian market. Any way: Expanding trading knowledge is never a bad habit and what DS shows, even on basic levels for free, is very nice stuff to understand

Good trading

DanPickUp

 

[psvaja]

Dear Psvaja

Thanks to mention Dan Sheridian and thanks to post all that files from your personal collection.

What I miss from your side is to tell the readers here, that he is a pro at the CME in the USA. The CME offers all what ever can be dreamed off on options and this is not the case in Indian market.

If Indian newbies are now going through all that stuff you nicely posted, they will experience a lot of confusion as what DS shows is done at the CME.

All what you posted has the level of basic stuff over there and already may not even can be trade at toll in your market.

Also DS would never ever show how to trade advanced stuff for free.

This just to inform the people here which do not know DS on a better level. So do not start to think that this is the holy grail in option trading. It is just basic stuff from an other trading world and a lot of stuff which not even can be traded in Indian market. Any way: Expanding trading knowledge is never a bad habit and what DS shows, even on basic levels for free, is very nice stuff to understand

Good trading

DanPickUp

Thanks dan. I agreed that all stuff that i posted is of US market. This is surely not holy grail. In fact, it is even more difficult to trade options in india because of margin requirements. The big funds that are trading options today are hardly make 1% to 2% per month consistently. Why i posted this stuff here ? because i have learnt a lot of adjustment technique specifically for calendar spreads & condors. We should not apply the same technique blindly in any other market including ours but it will surely help to learn different techniques of adjustments. What i understand is - adjusting a options postion is an art. Each time with same positions, adjustment can be different. The purpose of this stuff is to learn that art.

Thanks again

PRavin

 

[kiranjakka]

Panel may meet next week to discuss FDI

The UPA coordination committee is expected to meet early next week — either on August 22 or 23 — to work out a roadmap for reforms, in what may set the stage for opening up civil aviation and multi-brand retail to foreign players.

West Bengal chief minister Mamata Banerjee, the biggest hurdle to opening up, is expected to attend the meeting with the Congress reaching out to her to soften her opposition to the two proposals that have been awaiting consensus since last November.

The government wants to set the stage for announcements in early September in an effort to change the perception about the government's seriousness on getting the economy back into shape though a series of reforms. In any case, the calculation in the government is that it has a five-week window from September 7, when the monsoon session ends, to October 15, the expected date for announcement of elections in Gujarat and Himachal Pradesh, to put in place these measures. Along with the FDI package, the government is also hoping to put together a revised roadmap for fiscal consolidation based on inputs it receives from a panel comprising former finance commission chief Vijay Kelkar, economist Indira Rajaraman and former expenditure secretary Sanjeev Mishra.

On August 10, TOI was the first to report that a UPA coordination committee was being convened to evolve a consensus on FDI in retail.

situation
1.buy call option of pantaloon 170 which closed at 2rs
2.buy 400 call option of jetairways which is in ban period now for trading once the ban is lifted around 1rs to be implemented based on news




pantaloon did well yesterday and today is the jetairways