GOOD PROFIT: Hedged nifty positions with straddle...

[linkon7]

strangles loose value much slowly and present premium is very low. That gives u a situation where the decay will be very less over a period of time. e.g. 5400 - 5000 strangle would fetch you a total of say 110 points and 2 weeks of staying in the band will will cause a decay of 15-20 points. Since we are going to have RBI policy action and budget soon, a buildup will make these OTM options to increase in premium.

normal thumb rule is, when the volatility is low, people buy strangles. when its high, people sell them.

I initiated a 5200-5300 strangle of jan series for a total premium of 76 points this week. Expectedly, 5200 will be worth 76 plus today itself...5300 will not become zero, to that's a bonus.
If someone would short this strangle, he would be playing for cover now...

5200 put... made a century...i exited at 93...holding 5300 call..which is free..for tomorrow...

 

[sibumajumdar]

5200 put... made a century...i exited at 93...holding 5300 call..which is free..for tomorrow...

Done an excellent job. Congratulation. My position is bad today as almost whole day i was busy in an urgent work. Anywaty thanks for sharing your trading with us....SLM Uncle

 

[linkon7]

sold 4700 put march for 143
sold 4900 call march for 132

total premium collected 275

 

[sumitdasjoshi]

linkion one question if time nifty will be in range bound till expiry so the tim edecay will hurt you are give you good profit i am asking this because you sold that put and call will you expian

 

[linkon7]

dont plan to take any action... till either leg is under threat...

 

[linkon7]

had shorted 4700 put march 1 pair at 260 in the morning
shorted 4900 call march 1 pair at 137...

 

[linkon7]

avg cost of the 3 pairs...
282.5

 

[rafiswcc]

I am holding tata motor call @ 16.4,now it is 6, what should i do,can your please help me,how to ride it
thanks

 

[sumitdasjoshi]

i am holding tata motor call @ 16.4,now it is 6, what should i do,can your please help me,how to ride it
thanks

you have alredy lost you 10 rs why wating for loose more and one more thing always set a stop loss for evry trade otherwise wise you will end up loose all the money you have

 

[linkon7]

I am holding tata motor call @ 16.4,now it is 6, what should i do,can your please help me,how to ride it
thanks

There was no long on this chart. What prompted you to take a long..? There has to be a method based on which you pick a direction and target. I think its time u evaluate that first.

The chart looks oversold, if we manage to close above 694, then it makes sense to hold on to your option. Now things are in the hope & pray-to-God mode. If we close above 723 mark then u can average by buying another lot and pray for further upmove. A close below 633 is ur must exit point.