General Trading Chat

[princy01]

I had clearly replied that forget selling the 24000 pe but then also you want to talk about it. Well i am really very sorry to have given a trade. And definitely the end of the discussion from my side.

Sir ji

Please take things lightly, we are traders and we are under pressure always as its a difficult job to do, why make us more tensed, maybe other person is right maybe not, just be calm always

 

[varunkochhar]

He was right in pointing out the spread in 24000 PE that is why i had told to go in for a future.

 

[venkatbm]

This self-made $900 million trader (Raamdeo Agrawal) warns rally in Indian stocks not based on facts

http://economictimes.indiatimes.com...cations&utm_medium=editpush&utm_campaign=News

 

[cloudTrader]

This self-made $900 million trader (Raamdeo Agrawal) warns rally in Indian stocks not based on facts

http://economictimes.indiatimes.com...cations&utm_medium=editpush&utm_campaign=News

Just want to comment that atleast there is someone who is talking about facts too.. :thumb:

 

[wisp]

Aadhaar card - companies are being to submit aadhar of employees!!

 

[Subhadip]

Forget the selling 24000PE. One can still buy BN at current rate 23475 buy 23600PE at 170 and sell 23700CE at 33. I just did. These are all liquid.

Future buying = CE buying + PE sold= synthetic future buying.

It's BNF buying and synthetic future selling.

No gain no loss..IMHO

How no gain no loss. Sir. Let us take 3 levels to substantiate the arguement.

Scene 1 BN at 23600. (Profit in futures 125 loss in PE around 80 assuming 23600 PE would still be around 80-90 as today is not expiry. 23700 CE would not increase)

At 23700 BN Profits 225 PE loss 130 CE -30

At 23800 BN + 325 PE - 150 Ce - 70

Check for yourself. I have taken this trade. Will give you the results at expiry tom. My only consideration for taking this trade is that my risk is defined at almost zero. Whatever i make would be a bonus.

I am not in front of laptop.. will post ur strategy in Finideas volhedge..after that u will understand.

I would second Subhadip Da.

By buying Future your Delta +1
And your selling a synthetic future, which is nothing but BUY PE, SELL CE.

Now, coming to the real stats, ur PE/CE pair is slight skewed with a +ve Delta of about 0.3.
So if mkt went down from your entry, u'd have a small loss.

But the mkt has to move sufficiently for u to gain IMHO, like 200pts afte which it hits a gain ceiling.

Similarly, u'll have a very small loss if mkt went down, say within 200pts.
Lower than that, u'll have virtually NET delta=0 from the buy PE, hence limit loss.

More technically, since PE is more ATM then CE, u'll have slower loss and faster gain in terms of points, hence a good R:R
but strategy isn't bullet proof (This line be taken sportingly )

Now the screen shot:

 

[Smart_trade]

This self-made $900 million trader (Raamdeo Agrawal) warns rally in Indian stocks not based on facts

http://economictimes.indiatimes.com...cations&utm_medium=editpush&utm_campaign=News

Ramdeo Agrawal is not a trader.He is a value and growth investor and wealth manager ,investing for long term. " Buy right and sit tight" is his investment philosophy.

Stock market always discounts future. If the rally in the stock market is not based on facts then Ramdeo Agrawal should have been bearish on the markets.But it is a well documented fact that he is very bullish on Indian markets .He is in fact on record saying that he is 100 % invested in the stock markets.

Smart_trade

 

[vikas2131]

Ramdeo Agrawal is not a trader.He is a value and growth investor and wealth manager ,investing for long term. " Buy right and sit tight" is his investment philosophy.

Stock market always discounts future. If the rally in the stock market is not based on facts then Ramdeo Agrawal should have been bearish on the markets.But it is a well documented fact that he is very bullish on Indian markets .He is in fact on record saying that he is 100 % invested in the stock markets.

Smart_trade

In a way..he is right...CB are printing 200 billion dollars every month around the world..it is a well known fact ..i dnt know why people are surprised ..

 

[aja]

Aadhaar card - companies are being to submit aadhar of employees!!

One day Aadhaar will get failed and no one will get Aadhaar from Govt.

 

[Smart_trade]

We can be bullish or bearish based on how we perceive things. There are many people in our own forum who are bearish from nifty 7900 levels and cannot understand why the market is going up .But Ramdev Agrawal is super bullish on the markets.In fact he is saying that we are in a huge bull market and the best investment opportunities are in next few years.

Smart_trade