General Trading Chat

[vijkris]

Dow 280 points up.

Vivek

Quite close competition for White House it seems. Positional traders must put some hedge using options.
Intraday traders should follow the trend, instead of predicting the direction.!

 

[Smart_trade]

Quite close competition for White House it seems. Positional traders must put some hedge using options.
Intraday traders should follow the trend, instead of predicting the direction.!

Options are expensive because of the event risk.

ST

 

[Smart_trade]

Correction was to come, US election is just an excuse...market was running ahead of its fundamentals,so some cooling off was necessary.

Smart_trade

 

[rkripal]

For positional trader it would be better to stay SOH for a while. As our markets remain closed during US open, We stand at greater risk than the US traders.

 

[Rish]

Quite close competition for White House it seems. Positional traders must put some hedge using options.
Intraday traders should follow the trend, instead of predicting the direction.!

8500 call and put add together 240 points.......anyone buying both the options thinking smart....will lose the premium....

Swing will be between 260 point....this is my observation.....premium will be shrinking and market makes us fool...

No hedging....will workout....

 

[vikas2131]

For positional trader it would be better to stay SOH for a while. As our markets remain closed during US open, We stand at greater risk than the US traders.

I agree... we are not going to die if we dnt trade for one day..

 

[travi]

ICICI Bank Q2 profit beats estimates at Rs 3102 cr, NPA rises.

Another support to the Indexes.

 

[HappyLife]

Tomorrow Ashok Leyland & Bhel result (play keeping today’s Day High & Day Low in mind)

 

[VJAY]

Beautiful explanation by Swami Vivekananda:
Explaining the meaning of ‘Association’. He said...........

“The rain drop from the sky: if it is caught in hands, it is pure enough for drinking. If it falls in a gutter, its value drops so much that it can’t be used even for washing the feet. If it falls on hot surface, it perishes. If it falls on lotus leaf, it shines like a pearl and finally, if it falls on oyster, it becomes a pearl. The drop is same, but its existence & worth depend on with whom it associates.”

Always be associated with people who are good at heart.

 

[cinderblock]

Quite close competition for White House it seems. Positional traders must put some hedge using options.
Intraday traders should follow the trend, instead of predicting the direction.!

Correct. Hedging by definition is not really used to make a profit but to protect a part/whole portfolio against extreme moves.

So, if you have a positional trade running or an equity portfolio it does make sense to buy puts even if they are expensive. Ideally, you could have bought them earlier but you do need to protect extreme downside before a major event.

Buying straddles / strangles is not hedging. It's a punt on market range.