General Trading Chat

[varunkochhar]

A plain buying of 23500 CE would only give you profits above 23610. And selling a naked put would be very risky.

 

[varunkochhar]

Why i wanted to sell the higher strike PE instead of Buying BN was because the premium on BN could fluctuate but the PE would be based on Spot prices.

 

[headstrong007]

Sir no need i have done this in real time and i will show the results today itself. I am not saying that it will work, but if the levels i have given above come then it will surely happen this way. One thing i am sure of is that my loss is capped at almost zero which is most important.

if trade is right.. all is well..
But,
If trades go wrong, the loss can not be capped as almost zero.
Count trading cost, slippage, and bid-ask spread even for liquid contracts for all 3 trades...

 

[varunkochhar]

Sir i have written almost zero. Not zero. And yes trading always entails a cost.

 

[varunkochhar]

Sir on an event day if you take a trade of 1:10 safely, that in itself is a big achievment.

 

[Sidz]

if trade is right.. all is well..
But,
If trades go wrong, the loss can not be capped as zero.
Count trading cost, slippage, and bid-ask spread even for liquid contracts for all 3 trades...

If one is so concerned about slippages and other minor risks involved, it is better to wait and not trade.

Or, share other strategies, if any, that has better risk-return numbers than what Varunji shared.

 

[varunkochhar]

The beauty is even if the trade goes wrong your loss is capped. (I hope this is ok with you)

 

[varunkochhar]

This idea started with your post of 23500 CE being very costly. I just gave an alternative trade for going long with minimal risk. That is it. I am not advocating any trade.

 

[headstrong007]

Sir i have written almost zero. Not zero. And yes trading always entails a cost.

For 3 leg trade (one fut and 2 options) cost is always bigger than simple one trade..u can't claim it almost zero...

 

[varunkochhar]

Sir how much brokerage do you pay for options. I just pay Rs.0.60 per share.(both sides included)